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Unbalance in Demand and Supply, and Input-Provision Capital Formation: Brazil, 1920–1951

Published online by Cambridge University Press:  03 February 2011

Carlos Manuel Pelaez
Affiliation:
University of Wisconsin

Extract

The thesis of this essay is that the industrial development of Brazil, 1920–1951, was unbalanced in demand and supply and characterized by input-provision capital formation. Part I introduces an analytical framework. Part II consists of preliminary historical evidence supporting the framework.

Type
Articles
Copyright
Copyright © The Economic History Association 1965

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References

1 Hirschman, Albert O., The Strategy of Economic Development (New Haven: Yale University Press, 1959)Google Scholar. The analysis is based on this work.

2 Ibid., pp. 65–70.

3 Ibid., p. 121.

4 Ibid., p. 109.

5 Ibid., p. ix.

6 The criterion of importance is the relative rate of growth in recent periods. In the period surveyed, the traditional industries, foodstuffs and textiles, accounted for the major part of industrial production. The structural transformation, however, was taking place in automobiles, metalworking, iron and steel, cement, and chemicals.

7 The terms of trade for Brazil deteriorated 50 per cent between 1928 and 1937. Brazil's capacity to import declined 44 per cent in the same period. United Nations Economic Commission for Latin America, Economic Survey of Latin America, 1949 (New York: 1951), p. 211Google Scholar.

8 Some of these parts were transmission spline shafts, grease retainers, universal joint trunions, pistons, piston rings, bushings, shackle bolts, and cast iron parts.

General Motors Overseas Corporation, Economic Survey of Brazil, II (São Paulo: 1943), p. 38Google Scholar.

9 Ibid., p. 23.

10 United Nations Economic Commission …, p. 250.

11 The company purchased and enlarged a small plant. The original capital of the company was 150,000 thousand cruzeiros, approximately 7,500,000 of 1940 dollars. General Motors, p. 6; Wythe, George, Brazil, An Expanding Economy (New York: Twentieth Century Fund, 1949), p. 137Google Scholar; Ministry of Foreign Affairs, Brazil, 1933 (Rio de Janeiro: 1934), p. 335Google Scholar.

12 General Motors, p. 7.

13 Joint Brazil-United States Economic Development Commission, The Development of Brazil (Washington, D. C.: Institute of Inter-American Affairs, 1954), p. 10Google Scholar.