In this paper, we have tried to discuss theoretically Kaldor-Verdoorn's Law, showing its relevance to the determination of how dynamic an industry of country on region can be. Furthermore, we have made an empirical test of such theoretical proposition for the Brazilian industry during the period 1985 to 1997, using an error correction model (MCE), whose results indicate that the Brazilian industry has been reasonably dynamic, specially after the opening process of its economy had begun, in 1990, when a combination of short and long run effects made productivity grow more intensively than production.
