Specialization and competitiveness in brazilian foreign trade

Abstract

THIS PAPER APPROACHES THE EFFECTS OF PATTERS OF SPECIALIZATION ON BRAZILIAN FOREIGN TRADE. BY APPLYIGN A CONSTANT-MARKET-SHARE ANALYSIS TO THE BRAZILIAN EXPORT AND IMPORT BILLS BETWEEN EARLY-80S AND MID-90S, WE ATTEMPT TO ASSESS THE QUANTITATIVE WEIGHTS OF STRUCTURAL EFFECTS, ALLOCATION EFFECTS AND COMPETITIVENESS EFFECTS ALONG THAT PERIOD. OUR RESULTS POINT OUT TO A SUBSTANTIAL NEGATIVE ROLE PLAYED BY PREVAILING PATTERNS OF SPECIALIZATION WITH RESPECT TO THE ATTAINMENT OF TRADE BALANCES COMPATIBLE WITH DOMESTIC HIGH GROWTH.