Low export demand in Brazil hindering growth, productivity, and trade benefits.
The article examines why some countries grow slowly while others grow quickly by looking at how sensitive their export demand is to changes in income and prices. By studying Brazil, the researchers found that low export demand elasticity and importing capital goods can explain slow growth. They also estimated total-factor productivity growth and scale economies. The results suggest that Brazil's export demand elasticity is low, leading to slower growth, and they calculated the potential benefits of trade for the country's economy.