OECD recommendations

Stronger productivity will be key for strong and inclusive growth.  Productivity growth has collapsed. Raising it will depend on reforms to boost competition, lower trade barriers and administrative burdens and simplify indirect taxes.

  • Further expand participation in vocational training to alleviate skill shortages.
  • Reduce trade protection steadily by lowering tariffs and scaling back local content requirements.
  • Strengthen competition by streamlining regulation on product markets and implementing planned reductions in entry regulations.
  • Consolidate indirect taxes at the state and federal levels and work towards one value added tax with a broad base, full refunds for input VAT paid and zero-rating for exports.
  • Improve the technical capacity and planning for infrastructure concessions. 



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Productivity - Brazil


Source: OECD May 2017 Economic Outlook database


 Key publications

Araújo,S. and D. Flaig  (2016), "Quantifying the Effects of Trade Liberalisation in Brazil: A Computable General Equilibrium Model (CGE) Simulation"OECD Economics Department Working Papers, No. 1295, OECD Publishing, Paris.

Arnold, J. (2016). “Brazil: A tale of two industries or how openness to trade matters”, Blog post on OECD ECOSCOPE Blog.

De Negri, F. and L. Cavalcante (eds) (2014), “Produtividade no Brasil: desempenho e determinantes”, IPEA Research Institute, Brasília, Vol 1 and Vol 2.

OECD (2015). OECD Economic Survey of Brazil, OECD Publishing, Paris.

Institutions icon Productivity - enhancing institutions

IPEA (Institute for Applied Economic Research) is a federal publicly funded research centre linked to the Secretariat of Strategic Affairs of the Presidency of the Republic. It provides technical and institutional support to government actions – enabling the formulation and reformulation of public policies and Brazilian development programs. 

FGV (Fundação Getúlio Vargas) is a privately-funded research centre

TCU (Tribunal das Contas da União) is a government auditing body. 


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