Industrial policy and deindustrialization in Brazil: David Kupfer’s inspirations to the debate

Abstract

This study aims to evaluate the processes of regressive specialization and early deindustrialization that affect the Brazilian productive structure. This research draws motivation from the contributions brought by David Kupfer to the reflections and propositions of industrial and innovation policies, which this study treated as a means for national development, rather than as an end in itself. In the light of these reflections, conjectures are made for the public debate on the resumption of economic development by reindustrialization. After a brief introduction, this study is divided into three sections. The first one, Regressive specialization and early de-industrialization: reflections on the Brazilian case, provides a diagnostic overview of the process of loss of industrial substance in the Brazilian economy and its consequences; the second one, Commodity boom: Impacts on the exchange rate, on the terms of trade, and on the trade balance of Brazilian industry, seeks a more detailed analysis of the problem of reprimarization of the Brazilian productive structure; and the third one, Final Considerations: reflections for the resumption of industry and economic development, describes, to conclude this study, contributions to an agenda of debates on the issues addressed throughout this research.