1. COVID-19 and the Brazilian manufacturing sector: Roads to reindustrialization within societal purposes.
- Author
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Dweck, Esther, Marcato, Marilia Bassetti, Torracca, Julia, and Miguez, Thiago
- Subjects
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MANUFACTURING industries , *COVID-19 pandemic , *COVID-19 , *INDUSTRIAL policy , *TAX cuts , *FINANCIAL crises - Abstract
• The pandemic-crisis effects on Brazilian manufacturing industries are investigated. • An input-output model is employed to address its sectorial composition and linkages. • The pandemic-crisis has further harmful effects on knowledge-intensive industries. • EIHC promotes high-tech industries, while it showed higher degree of import dependence. • COVID-19 may be crucial to rethink industrial policy space within societal purposes. The COVID-19 crisis represents a turning point to rethink industrial policy spaces and countries' productive autonomy, especially for developing economies, such as Brazil, that call for new ways of thinking about manufacturing within societal purposes. Using an input-output model, the paper explores the pandemic-crisis-effects in the case of the Brazilian manufacturing sector. We find that the pandemic-crisis has harmful effects on the Brazilian productive structure, revealing the dependence on imports of the Brazilian Health System. Reductions in manufacturing gross output and value-added are mainly seen in knowledge-intensive subsectors, followed by job losses and tax revenue reduction. We suggest that the pandemic points to some roads to reindustrialization and resilience, given the reorganization of international production networks and the growing dependence on imports in key manufacturing sectors. Thus, the potential role of the manufacturing sector to achieve inclusive and sustainable growth reveals the importance of building productive capacity beyond the pandemic. [ABSTRACT FROM AUTHOR]
- Published
- 2022
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