The Case of Brazil
Edited by Werner Baer
Edmund Amann and Werner Baer 6.1 INTRODUCTION The regional concentration of economic activities has been a constant in Brazil’s economic history. The first great export cycle was concentrated in the Northeast; this was followed by the gold export boom which moved major economic activities to the Center-South (especially Minas Gerais); and the coffee export cycle, which began in the nineteenth century, concentrated economic activities at first in Rio de Janeiro and surroundings, moving to the state of São Paulo in the middle of the nineteenth century, where the concentration remained, though spreading to some of the areas close to São Paulo.1 The regional concentration established during the coffee export cycle would remain as the country began a process of industrial growth based on immigrant labor demand. By the mid-twentieth century, as the country switched from an open to a closed economy, pursuing a policy of import substitution industrialization (ISI), the geographical concentration of economic activity centered still further on the South and Southeast where much of the Brazil’s productive capacity and wealth were located. In the twentieth century the dynamics of market forces tended to reinforce this regional concentration, as both domestic and foreign investors were interested in locating their activities in the region with the highest per capita income, the best infrastructure, the best human capital, and so on. Only special government actions through incentives, various types of transfer payments, and investments of state enterprises were able to bring about some reverse flow of investments.2 Until the...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.