Essays on economic growth

A fundamental question in development economics is why some economies are rich and others poor. To illustrate the income per capita gap across economies consider that the average gross domestic product (GDP) per capita of the richest 10 percent of economies in the year 2010 was a factor of 40-fold that of the poorest 10 percent of economies. In other words, the average person in a rich economy produces in just over 9 days what the average person in a poor economy produces in an entire year. What are the factors that can explain this difference in standard of living across the world today? With this in view, this dissertation is a conjunction of three essays on the economic growth field which we seek a possible responses to this question. The first essay investigates the existence of resource misallocation in the Brazilian manufacturing sector and measures possible distortions in it. Using a similar method of measurement to the one developed by Hsieh and Klenow (2009) and firm-level data for 1996-2011 we find evidence of misallocation in the manufacturing sector during the observed period. Moreover, our results show that misallocation has been growing since 2005, and it presents a non-smooth dynamic. Significantly, we find that the Brazilian manufacturing sector operates at about 50% of its efficient product. With this, if capital and labor were optimally reallocated between firms and sectors we would obtain an aggregate output growth of approximately 110-180% depending on the mode in which the capital share is measured. We also find that the economic crisis did not have a substantial effect on the total productivity factor or on the sector's misallocation. However, small firms in particular seem to be strongly affected in a global crisis. Furthermore, the effects described would be attenuated if we consider linkages and complementarity effects among sectors. Despite Brazil's well-known high tax burden, there is not evidence that this is the main source of resource misallocation. Moreover, there is a distinct pattern of structural change between the manufacturing sectors in industrialized countries and those in developing countries. Therefore, the second essay demonstrate that this pattern differs because there are some factors that distort the relative prices and also affect the output productivity. For this, we present a multi-sector model of economic growth, where distortions affect the relative prices and the allocation of inputs. This phenomenon imply that change of the production structure or perpetuation of the harmful structures to the growth rate of aggregate output. We also demonstrate that in an environment with majority decision, this distortion can be enhanced and depends on the initial distribution of firms. Furthermore, distortions in relative prices would lead to increases in the degree of misallocation of resources, and that imply that there are distinct patterns of structural changes between economies. Finally, the calibrated results of the framework developed here converge with the structural change observed in the firm-level data of the Brazilian manufacturing sector. Thereafter, using a cross-industry cross-country approach, the third essay investigates the existence of an optimal level of competition to enhance economic growth. With that in mind, we try to show that this optimal level is different from industrialized and under development economies due to the technology frontier distance, the terms of trade, and each economy's idiosyncratic characteristics. Therefore, the difference in competition industry-country level is a channel to explain the output for worker gap between countries. The theoretical and empirical results imply the existence of an inverted-U relationship between competition and growth: starting for an initially low level of competition, higher competition stimulates innovation and output growth; starting from a high initial level of competition, higher competition has a negative effect on innovation and output growth. Given on average industries in industrialized economies present higher competition level. With that if we control for the terms of trade and the industry-country fixed effect, if the industries of the developing economy operated under the same competition levels as of the industrialized ones, there is a potential increase of output of 0.2-1.0% per year. This effect on the output growth rate depends on the competition measurement used.

The impact of the 2008 economic recession on three residential property type investments: a case study of five diverse zip codes in Washington DC, USA

There has been 47 recessions in the United States of America (US) since 1790. US recessions have increasingly affected economies of other countries in the world as nations become more and more interdependent on each other. The worst economic recession so far was the “Great Depression” – an economic recession that was caused by the 1929 crash of the stock market in the US. The 2008 economic recession in the US was a result of the burst of the “housing bubble” created by predatory lending. The economic recession resulted in increased unemployment (according to NBER 8.7 million jobs were lost from Feb. 2008 to Feb. 2010); decrease in GDP by 5.1%; increase in poverty level from 12.1% (2007) to 16.0% (2008) (NBER) This dissertation is an attempt to research the impact of the 2008 economic recession on different types of residential investments: a case study of five (5) diverse neighborhoods/zip codes in Washington DC, USA The main findings were that the effect of the 2008 economic depression on the different types of residential properties was dependent on the location of the property and the demographics/socio-economic factors associated with that location.

Wasted: understanding the economic and social impact of food waste

Over one-third of global food production goes to waste while over 850million people are fighting chronic hunger. The United States is the world’s largest food waster. One third of America’s food with an economic value of US$161 billion is wasted and less than 7% is recycled. American food waste ends up in landfills creating powerful methane gas emissions. South Korea, on the other hand, has implemented the world’s strictest food waste laws, and today diverts 93% of wasted food away from landfills turning such waste into powerful economic opportunities. This Master Thesis investigates the reasons behind global food waste by comparing South Korea and the US. It explores what these two nations are doing to address their respective food waste problems, South Korea successfully, the US not. The paper looks at the two countries’ respective policies and national characteristics, which impact decision-making and recycling processes. The effort concludes that South Korea has embarked on a necessary paradigm shift turning food waste into powerful economic drivers leading to a sharp decline in food waste. In the US, food waste continues to be a major problem without a national strategy to remedy waste. Any effort in the US, while laudable, is sporadic and local, and hence the US misses out on possibly important economic growth opportunities.

Internet e movimentos populares: um modelo global de dados em painel

Nos últimos anos, o mundo vem assistindo a um maior número de mobilizações sociais, que ocorrem em todo o espectro de regimes de governo e níveis de desenvolvimento econômico: de países tradicionalmente democráticos e desenvolvidos, a países em desenvolvimento sob regimes autoritários. Tais mobilizações vêm ocorrendo simultaneamente a uma expansão acelerada das Tecnologias da Informação e Comunicação (TIC), mais notadamente o avanço da Internet e dos telefones celulares (ITU, 2014; CETIC, 2013), tornando mais rápido e fácil o acesso e difusão de informações sem o intermédio dos meios de comunicação de massa tradicionais; há os que defendem que o contexto de cada nação é o grande responsável por tais manifestações, enquanto outros citam a importância tanto das TIC quanto dos fatores contextuais como influenciadores. O objetivo desta pesquisa é identificar as variáveis explicativas da ocorrência de protestos, considerando aspectos tecnológicos, sociais e políticos, por meio da construção de modelos utilizando dados em painel. Para tal são utilizados dados do Banco Mundial, Fórum Econômico Mundial e ITU, desenvolvendo uma amostra de 124 países. O resultado desta análise revela que o percentual de usuários de Internet influencia positivamente a ocorrência de protestos e que países desenvolvidos possuem maior a chance de apresentarem manifestações.

Climate Justice: manifestação em Copenhague (partes 1, 2, 3 e 4)

Protesto realizado em 9/12, dia em que foi cancelada plenária que discutiria vinculação legal do acordo global. Manifestantes pediram teto de 1.5 graus para aumento de temperatura e posições ousadas e contundentes dos países em desenvolvimento

Supremo interesse: protagonismo político-regulatório e a evolução institucional do processo de seleção dos ministros do STF

Partindo da constatação de que o Brasil acompanha hoje um fenômeno global de protagonismo das cortes supremas nas sociedades complexas contemporâneas, notadamente na criação de políticas-públicas e regulação, o estudo procura mapear a evolução – e progressiva democratização – de uma estrutura de freios e contrapesos prevista na Constituição da República Federativa do Brasil de 1988 (“Constituição”), qual seja, o processo de seleção dos ministros do Supremo Tribunal Federal. Ao longo do texto é analisada a arquitetura institucional e constitucional do processo de indicação e aprovação de novos ministros, bem como exemplificadas mudanças no perfil dos atores políticos, no plexo de competências das instituições envolvidas e no contexto social, político, econômico e cultural que forçaram a transformação prática do modelo de seleção institucional, sem alteração, no entanto, da formatação originalmente prevista desde o Século XIX. Mapeando a origem e evolução da fórmula constitucional de colaboração entre o Poder Executivo e o Poder Legislativo para a escolha dos membros da cúpula do Poder Judiciário, o estudo identifica a origem do modelo brasileiro na inspiração da experiência norte-americana, descrevendo esta e os paralelos possíveis com aquele. A partir do marco central da Constituição, o trabalho procura demonstrar uma progressiva mobilização de atores políticos e sociais em relação ao processo de escolha, notadamente em relação ao momento em que os indicados para o Supremo Tribunal Federal são sabatinados pela Comissão de Constituição, Justiça e Cidadania do Senado Federal. Finalmente, são analisadas concretamente as sabatinas e algumas das suas principais discussões, buscando extrair lições que sirvam de norte colaborativo para a evolução da forma de seleção dos ministros do Supremo Tribunal Federal, inclusive como instrumento de controle prévio de seus membros, futuros elaboradores de políticas-públicas.

5th BRICS Trade and Economic Research Network (TERN) meeting: the impact of mega agreements on BRICS

The BRICS TERN – BRICS Trade and Economics Research Network is a group of independent research institutes established four years ago by five think tanks from Brazil, Russia, India, China and South Africa. The main objective of the network is to study different aspects of trade and economic relations amongst these five countries. The purpose of the V BRICS TERN Meeting was to analyze and debate the effects of the negotiations of the Mega Agreements, mainly those initiated by the US and the EU, already in negotiation, to each of the BRICS Trade Policies. Both Mega Agreements were examined – the Trans Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP). The studies included the main impacts on trade flows and on the international trade rules system, respecting the perspective of each of the countries concerned. This workshop was an initiative of the Center for Global Trade and Investments (CGTI), a think-tank on International Trade held by FGV Sao Paulo School of Economics. Its main objective is the research on trade regulation, preferential trade agreements, trade and currency, trade and global value chains, through legal analysis and economic modelling. One of its main researches, now, is on the potential economic and legal impacts of the Mega Agreements on Brazil and WTO rules. This meeting was organized in March14, 2014, in Rio de Janeiro, in a perfect timing for introducing such issues in the international agenda, in advance of the 6th BRICS Summit scheduled to be held in Brazil in July 2014.

Optimisation of solid-phase microextraction combined with gas chromatography–mass spectrometry based methodology to establish the global volatile signature in pulp and skin of Vitis vinifera L. grape varieties

The volatiles (VOCs) and semi-volatile organic compounds (SVOCs) responsible for aroma are mainly present in skin of grape varieties. Thus, the present investigation is directed towards the optimisation of a solvent free methodology based on headspace-solid-phase microextraction (HS-SPME) combined with gas chromatography–quadrupole mass spectrometry (GC–qMS) in order to establish the global volatile composition in pulp and skin of Bual and Bastardo Vitis vinifera L. varieties. A deep study on the extraction-influencing parameters was performed, and the best results, expressed as GC peak area, number of identified compounds and reproducibility, were obtained using 4 g of sample homogenised in 5 mL of ultra-pure Milli-Q water in a 20 mL glass vial with addition of 2 g of sodium chloride (NaCl). A divinylbenzene/carboxen/polydimethylsiloxane fibre was selected for extraction at 60 °C for 45 min under continuous stirring at 800 rpm. More than 100 VOCs and SVOCs, including 27 monoterpenoids, 27 sesquiterpenoids, 21 carbonyl compounds, 17 alcohols (from which 2 aromatics), 10 C13 norisoprenoids and 5 acids were identified. The results showed that, for both grape varieties, the levels and number of volatiles in skin were considerably higher than those observed in pulp. According to the data obtained by principal component analysis (PCA), the establishment of the global volatile signature of grape and the relationship between different part of grapes—pulp and skin, may be an useful tool to winemaker decision to define the vinification procedures that improves the organoleptic characteristics of the corresponding wines and consequently contributed to an economic valorization and consumer acceptance.

Chronic Diseases: Chronic Diseases and Development 2 Health, agricultural, and economic effects of adoption of healthy diet recommendations

Transition to diets that are high in saturated fat and sugar has caused a global public health concern as the pattern of food consumption is a mayor modifiable risk factor for chronic non-communicable diseases Although agri food systems are intimately associated with this transition, agriculture and health sectors are largely disconnected in their priorities policy, and analysis with neither side considering the complex inter relation between agri trade patterns of food consumption health, and development We show the importance of connection of these perspectives through estimation of the effect of adopting a healthy diet on population health, agricultural production trade the economy and livelihoods, with a computable general equilibrium approach on the basis of case studies from the UK and Brazil we suggest that benefits of a healthy diet policy will vary substantially between different populations, not only because of population dietary intake but also because of agricultural production trade and other economic factors

A SOCIAL JUSTICE STUDY: BRAZIL

This paper discusses the question of social justice in a global world, focussing on Brazil. Though largely debated, this question has not yet been properly answered (Kelsen, 2001, p. 1). Trying to contribute to this debate, this paper raises a general thesis: social justice involves a chaotic-solidaristic integration (da Silveira, 2002) between the discourse towards the egalitarian rights and duties and its practical sustainability by ethics and democracy.

Global citizens or faraway viewers? São Paulo residents talk about the 2006 Lebanon conflict

As the emergence of a global public sphere becomes a possibility, growing out of denser economic, political and communicative networks as well as demanded by increasingly complex international problems, questions arise about the capacity and willingness of various national publics to engage in the global debate. This paper shows the results of a news reception analysis with the public of the city of São Paulo, Brazil during the months of July-November 2006, when the Lebanon conflict was broadly covered by the Brazilian media. The paper identifies the modes of engagement with the news about the international conflict, the types of reasoning used by these publics in interpreting the news, and the types of debates and conversations they have or don't have about the conflict. Special attention is given to the personal experience of learning about conflicts abroad and to the relationship between this experience and the construction of a new civic identity where participation in global affairs is an important element. The research shows that São Paulo residents are informed and care about international events, but to a large extent lack the resources and the spaces where they could reflect upon them. It also shows that young people tend to experience global events more intensely as part of their world than the general population. © 2008 Springer Science+Business Media, LLC.

Economic Survey of Latin America and the Caribbean 1998-1999

Includes bibliography

Economic Survey of Latin America and the Caribbean 2008-2009: Policies for creating quality jobs

Includes bibliography

Economic Survey of Latin America and the Caribbean 2009-2010: The distributive impact of public policies

Includes bibliography