Brazil’s economic growth and real (div)convergence from a very long-term perspective (1822-2019): An historical appraisal^*

Crescimento econômico brasileiro e real (di)convergência na perspectiva de muito longo prazo (1822-2019): Uma avaliação histórica

The reconstruction of the economic history of Brazil since independence from Portugal (1822) may lead to a new understanding of its economic growth. The deep-rooted idea that Brazil could have done better means there is a need to delve into each phase of its development. In this paper, we provide a very long-run perspective (1822-2019) of Brazil’s economic growth and process of real convergence. On the one hand, this review indicates that structural changes observed in the middle of the 20th century were crucial in promoting the country’s growth and real convergence with technologically advanced countries. On the other hand, poor institutional conditions and deficient human capital formation have emerged since colonial times as critical factors underlying Brazil’s inability to establish robust and sustainable economic growth.

KEYWORDS:
Economic growth; real convergence; Brazil; very long run.