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date: 29 February 2020

Abstract and Keywords

Production and employment in the Brazilian manufacturing industry grew significantly in the decade from 2004 to 2013, but the technological intensity of production activities declined. Growth was driven by domestic demand, which performed well due to the significant job creation, real minimum wage increases, and the credit boom. However, Brazilian manufacturing lost competitiveness, presented a negative labor productivity growth, and registered trade deficits in most sectors, including those traditionally associated with surpluses. The chapter also shows that the manufacturing sector is integrated into the global value chains by imports, but not by exports—which is a case of introverted fragmentation.

Keywords: manufacturing, competitiveness, labor productivity, import, export, manufacturing industry, Brazil

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