Brazilian underdevelopment portrayed by its excluding growth dynamics: an empirical analysis based on Celso Furtado

ABSTRACT Celso Furtado’s analysis of Brazilian underdevelopment is widely recognized for its historical-structural approach, while his macroeconomic analytical bias often receives little attention. Considering this, in addition to giving emphasis to this perspective of his analysis, this work aims at carrying out an empirical essay which tests the relationships among the main variables of the author’s scheme. For this purpose, an SVAR (Structural Vector Auto-regressive) is used with data from Brazilian economy, from 1965 to 2015. The results show that the tested interrelations are consistent with his macroeconomic interpretation of the growth process of Brazilian economy in the boundary of underdevelopment.