Ipea study points out that productivity grows in a limited way

GDP growth will be increasingly dependent on labor productivity

The Institute for Applied Economic Research (Ipea) has just released the first volume Performance, in the Productivity series, which analyzes the evolution of productivity indicators in the Brazilian economy from different perspectives. One of the issues highlighted by the book is the low productivity growth in Brazil since the late 1970s. Between 2003 and 2010, the resumption of economic growth and the improvement in the international terms of trade allowed the recovery of relatively high productivity gains. However, one of the authors of the book, Régis Bonelli, claims that GDP growth will increasingly be dependent on increases in labor productivity.

Another text, by Gabriel Coelho Squeff and Fernanda De Negri, both from Ipea, reveals that the productivity of the Brazilian economy grew little not because the participation of less productive sectors in the productive structure increased, but because productivity within the economic sectors grew little. De Negri, in an article co-signed by Luiz Ricardo Cavalcante, also shows that the factors with the greatest impact on productivity in Brazil are technology, the quality of the workforce, infrastructure deficiencies and the business environment.

Lucas Mation, Planning and Research technician at Ipea, details the issue of the business environment considering that its quality remained practically stagnant between 2003 and 2014, with no improvement in almost any indicator. In a world where most countries have made significant progress at this point, Brazil's stagnation has significantly worsened the country's relative position.

The book also brings comparisons between Brazil, China, the United States, Germany and Mexico in terms of labor productivity, analyzes productivity measurement methodologies, specifically addresses the situation of the agricultural sector and the impact of technological development, and presents results of a research with businessmen. The second volume of the work in partnership between Ipea and ABDI, entitled “Determinants”, is scheduled for release in the first half of 2015.

The publication was organized by Fernanda De Negri, director of Sectorial Studies on Innovation, Regulation and Infrastructure (Diset) at IPEA, and Luiz Ricardo Cavalcante, legislative consultant for the Federal Senate, in a partnership between IPEA and ABDI and several universities and research institutions. country survey. To know more: www.ipea.gov.br.