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

Abstract

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.

JEL Classification: N10; N16; O40.