Brazil as an Export Economy, 1880–1930

Abstract

Conventionally, the year 1930 is taken as a watershed in Brazilian history. It marked the fall of the political regime of the Old Republic and the transition from an export-led economy to a long period of growth led by import substitution. A closer look at the evidence makes this transition far less clear-cut. Coffee’s contribution to the generation of foreign exchange earnings remained crucial until the 1960s when import substitution had reached maturity. On the other hand, domestic industrial production had already become relevant as a share of domestic supply at the turn of the century. While attention here will be concentrated on the export economy in the 1880–1930 period, the links between the export economy and import substitution should be kept in mind. Table 2.1 shows the gradual replacement of agriculture by industry in GDP. While there is no information for the pre-1910 period, it is known that industrial activity was rather limited before the 1870s, and the first important industrial investment boom was in the early 1890s.