Relative price of capital, productivity and economic growth: the role of II PND

• Grant number: 09/13069-3
• Support Opportunities: Scholarships in Brazil - Master
• Start date: March 01, 2010
• End date: December 31, 2010
• Field of knowledge: Applied Social Sciences - Economics - Growth, Fluctuations and Economic Planning
• Principal Investigator: Mauro Rodrigues Jr
• Grantee: Dejanir Henrique Silva
• Host Institution: Faculdade de Economia, Administração e Contabilidade (FEA). Universidade de São Paulo (USP). São Paulo , SP, Brazil

Abstract

The objective of this project is to evaluate if restrictions to the international trade, as those carried through in the period of the II PND, are capable to explain a set of stylized facts for Brazil, from the decade of 70, as the rise of the relative price of capital, the productivity fall and accumulation of capital. The theoretical framework used to study the detached empirical fact consists of a model of heterogeneous capital with endogenous technical change. Prominence will be given to the possible impacts that restrictions to international trade can have on the economy in this context. As usual in literature, the model will be calibrated and evaluated if it is capable to generate resulted quantitative on-line with the observed one of the Brazilian experience.