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Regional deindustrialization in Brazil

Abstract:

This work aims at analyzing, for an unprecedented perspective, possible evidences of deindustrialization in the Brazilian economy. For that, it analyzes both regional and state data for the period 1985-2010, using indicators of deindustrialization already established. In addition, regional differences in the relation VTI / VBPI are analyzed and discussed considering winners and losers in terms of sectors and regions, presenting also possible reasons for the divergent behavior of the process by region. Finally, it estimates a parametric model regressing the participation of regional manufacturing industry in the region's GDP and regional per capita income. The results suggest that, at regional level, the Southeast, South and Northeast regions accumulate evidence of deindustrialization, while the other two regions follow an inverse pattern. Besides that, it seems that the Brazilian deindustrialization is in progress together with a process of (regional) spatial decentralization of industrial production and this deindustrialization process affects differently the regions.

Keywords:
deindustrialization; regional economy; manufacturing industry

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