What are the institutional relationships between the colonial past of the Brazilian economy and the development of its financial system?

Authors

Abstract

Based on the keynesian and cepalinian/furtadian theoretical framework, we investigate the institutional relations between the Brazilian colonial past and the development of its financial system until the 1960s. The underlying hypothesis is that there is a connection between a financial system deficient in providing investment funds and the economically peripheral Brazilian condition. This was subordinate to Portuguese European institutions, despite being immersed in the accumulation process of mercantile capitalism. This changed in the transition from the primary-export model to one geared to domestic demand. The industrialization process put pressure on a financial system unable to meet the growing demand for credit, which increased the need instruments and mechanisms for financing the investment. However, as the financial system developed, financial institutions profited not despite the “dysfunctionalities” imposed by the peripheral Brazilian economic condition, but through them. It is concluded that such institutional relations were the legacy of the colonial past left to the contemporary financial system.

Keywords: Brazil; Colonial economy; peripheral economy, financial system, productive system.

JEL Codes: F54, E44, N26. 

Author Biographies

Daniela Freddo, Departamento de Economia, Universidade de Brasília, Brasília, DF, Brasil.

Professora do Departamento de Economia da Universidade de Brasília. Possui doutorado em economia, na área de Economia Política, pela UnB (2015). Possui mestrado em teoria econômica, pela Universidade de Campinas (2011), onde cursou graduação (2002).

Juliano Vargas, Departamento de Economia, Universidade Federal do Piauí, Teresina, PI, Brasil.

Professor Adjunto A no Departamento de Ciências Econômicas (DECON) e no Programa de Pós-Graduação em Políticas Públicas (PPGPP) da Universidade Federal do Piauí (UFPI). Pesquisador na FAPEPI/SEPLAN/Governo do Estado do Piauí. Doutor em Ciências Econômicas (2020) pela Universidade de Brasília (UnB). Mestre em Ciências Econômicas (2015) e Bacharel em Ciências Sociais (2016) pela Universidade Federal do Espírito Santo. Bacharel em Ciências Econômicas (2012) pela Universidade Federal do Rio Grande do Sul. Bacharel e Licenciatura em Educação Física (2007) pela Universidade de Caxias do Sul. MBA em Gestão Estratégica em Comércio Exterior (2017) pela Universidade Candido Mendes. Membro da Associação Brasileira de Pesquisadores em História Econômica (ABPHE). Editor-chefe da revista INFORME ECONÔMICO (UFPI) (ISSN 1517-6258) e coordenador do Grupo de Pesquisa em Economia do Trabalho (GPET) (certificado pelo CNPq).

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Published

2023-07-25

How to Cite

FREDDO, D.; VARGAS, J. What are the institutional relationships between the colonial past of the Brazilian economy and the development of its financial system?. Nova Economia, [S. l.], v. 33, n. 1, p. 235–261, 2023. Disponível em: https://revistas.face.ufmg.br/index.php/novaeconomia/article/view/7076. Acesso em: 21 dec. 2024.

Issue

Vol. 33 No. 1 (2023): Revista Nova Economia

Section

Regular Issue

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Copyright (c) 2023 Daniela Freddo, Juliano Vargas

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