Implications of a Changing China for Brazil : A New Window of Opportunity?

As Brazil and China have become two of the largest global economies, they have also become increasingly connected. Three decades of fast-paced growth and structural change have turned China into the world s second-largest economy and have transform...

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Bibliographic Details
Main Author:	World Bank
Format:	Working Paper
Language:	English en_US
Published:	Washington, DC 2014
Subjects:	ACCUMULATION OF CAPITAL AGRICULTURE ANNUAL GROWTH BILATERAL TRADE CAPITAL ACCOUNT CAPITAL ACCUMULATION CAPITAL FLOWS CAPITAL GOOD CAPITAL GOODS CAPITAL INTENSITY CLOSED ECONOMY COIN COMMODITIES COMMODITY COMMODITY EXPORTS COMMODITY PRICES COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGES COMPETITIVE ADVANTAGE COMPETITIVENESS CONSUMER DURABLES CONSUMER GOODS CONSUMERS CONSUMPTION DEMAND CONSUMPTION GOODS CONSUMPTION GROWTH CROSS-BORDER INVESTMENT CURRENCY CURRENCY APPRECIATION CURRENCY CRISIS CURRENT ACCOUNT CURRENT ACCOUNT SURPLUSES CURRENT CAPITAL STOCK DEBT DEBT CRISIS DEMOGRAPHIC DEMOGRAPHIC CHANGE DEMOGRAPHIC CHANGES DEMOGRAPHIC TRANSITION DEMOGRAPHICS DEPENDENCY RATIO DEVELOPING COUNTRIES DEVELOPMENT ASSISTANCE DEVELOPMENT ECONOMICS DEVELOPMENT PATH DOMESTIC CONSUMPTION DOMESTIC DEMAND DOMESTIC MARKET DOMESTIC MARKETS ECONOMIC DEVELOPMENTS ECONOMIC DYNAMISM ECONOMIC EFFICIENCY ECONOMIC ENVIRONMENT ECONOMIC GROWTH ECONOMIC IMPACT ECONOMIC PERFORMANCE ECONOMIC POLICY ECONOMIC POWERHOUSE ECONOMIC REFORM ECONOMIC STABILITY ECONOMIC STRUCTURE ECONOMIES OF SCALE ELASTICITY ENVIRONMENTAL ENVIRONMENTAL DEGRADATION ENVIRONMENTS EQUILIBRIUM EXCHANGE RATE EXCHANGE RATE APPRECIATION EXCHANGE RATE FLUCTUATIONS EXCHANGE RATE VOLATILITY EXPANSION OF EXPORTS EXPORTER EXPORTERS EXPORTS EXPOSURE EXTERNAL COMPETITIVENESS EXTERNAL FACTORS EXTERNAL TRADE FINANCIAL CRISIS FINANCIAL FLOWS FINANCIAL REFORMS FISCAL POLICY FOREIGN DIRECT INVESTMENT FOREIGN DIRECT INVESTOR FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES FOREIGN MARKETS FUNDAMENTAL DETERMINANT GDP GDP PER CAPITA GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODEL GLOBAL DEMAND GLOBAL ECONOMIES GLOBAL ECONOMY GLOBAL INTEGRATION GLOBAL INTEREST GLOBAL MARKETS GLOBALIZATION GOVERNMENT DEBT GROSS NATIONAL INCOME GROWTH PERFORMANCE GROWTH RATE GROWTH RATES HIGH-INCOME COUNTRIES HUMAN CAPITAL IMBALANCES IMPORT IMPORT BARRIERS IMPORT CONTENT IMPORT DEMAND IMPORT GROWTH IMPORT RESTRICTIONS IMPORTS INCOME INCOME ELASTICITY INCOMES INDUSTRIALIZATION INFLATION INFLATIONARY PRESSURES INTEREST RATE INTEREST RATE DIFFERENTIALS INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL TRADE INVESTMENT CLIMATE INVESTMENT GOODS INVESTMENT RATE INVESTMENT RATES JOB CREATION LABOR COSTS LABOR FORCE LABOR FORCE GROWTH LABOR MARKET LABOR MARKETS LABOR PRODUCTIVITY LEVERAGE LIQUIDITY LIVING STANDARDS LOSS OF COMPETITIVENESS MACROECONOMIC REFORMS MARKET MECHANISM MARKET SHARE MARKET SHARES MIDDLE INCOME COUNTRY MIDDLE-INCOME COUNTRY MULTINATIONAL COMPANIES NATIONAL INCOME NATURAL RESOURCE NATURAL RESOURCES NET EXPORTS NEW MARKET NEW MARKET OPPORTUNITIES NOMINAL WAGE OIL OIL RESERVES OPEN CAPITAL ACCOUNT OUTPUT OUTPUT RATIO PATENTS PER CAPITA INCOME POLICY MAKERS POLLUTION PRICE INCREASES PRIVATE CONSUMPTION PRODUCERS PRODUCTION PROCESSES PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC GOODS PUBLIC INVESTMENT PUBLIC SPENDING PURCHASING POWER RAPID GROWTH REAL ESTATE REAL WAGES RECESSION REGIONAL TRADE RELATIVE PRICE RELATIVE PRICES SAVINGS SECTOR REFORM SLOW GROWTH SLOWDOWN STRUCTURAL CHANGE STRUCTURAL REFORM STRUCTURAL REFORMS SUPPLY CONSTRAINTS SUPPLY SIDE SUPPLY-SIDE SURPLUS SURPLUS LABOR TARIFF BARRIERS TAX TAX SYSTEM TECHNOLOGICAL CHANGE TECHNOLOGICAL PROGRESS TERMS OF TRADE TOTAL COSTS TOTAL EXPORTS TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TOTAL IMPORTS TRADE BARRIERS TRADE PATTERNS TRADE POLICIES TRADING PARTNER TRADING PARTNERS UNCERTAINTIES UNCERTAINTY UNEMPLOYMENT URBANIZATION VALUE ADDED WAGES WORLD DEVELOPMENT INDICATORS WORLD ECONOMY WORLD INTEREST RATES WORLD MARKETS WORLD TRADE WTO
Online Access:	http://documents.worldbank.org/curated/en/2014/07/19788684/implications-changing-china-brazil-new-window-opportunity http://hdl.handle.net/10986/19988

Description
Summary:	As Brazil and China have become two of the largest global economies, they have also become increasingly connected. Three decades of fast-paced growth and structural change have turned China into the world s second-largest economy and have transformed it into an upper-middle income country. Brazil, which had experienced its own episode of high growth between 1965 and 1974, has also become one of the largest economies. Over the last decade, Brazil and China have developed increasingly close linkages, which has come as no surprise given the scale of their economies, the complementary structure of resource endowments as well as the differences between the two countries in the structure of production and demand. This report examines how structural change in China is expected to present new opportunities and challenges for Brazil to enhance its global position and energize growth. Building on recent work (World Bank and Development Research Center, 2013), this report identifies three potential longer-term transformations of the Chinese economy structurally slower growth, a rebalancing on the demand and supply side, and a move up the value chain and examines their implications for Brazil. The report shows how the slowdown and rebalancing of China may also present new opportunities for Brazil, even if China s progression up the value chain is likely to present also new challenges. It lays out how Brazil could generate greater benefits from its interactions with China and how the changes in China would offer a new window of opportunity for Brazil to press ahead with its structural reform agenda. Overall, Brazil could gain tremendously from the anticipated structural changes in China, even though realizing these gains will require a proactive policy stance to enhance external ties and address internal growth and productivity constraints.

Implications of a Changing China for Brazil : A New Window of Opportunity?

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