Insertion of brazil in global value chains after labor reform

AutorUallace Moreira Lima
CargoPhd in Economic Development from the Instituto de Economia da Universidade Estadual de Campinas (IE/UNICAMP), (Economics Institute of the State University of Campinas, IE /UNICAMP)
Páginas690-712
Cadernos do CEAS, Salv ador/Recife, n. 248, p. 690-712, set./dez., 2019 | ISSN 2447-861X
INSERTION OF BRAZIL IN GLOBAL VALUE CHAINS AFTER LABOR
REFORM
Inserção do Brasil nas Cadeias Globais de Valor após a reforma trabalhista
Uallace Moreira Lima (UFBA)
Informações do artigo
Recebido em 05/08/2019
Aceito em 09/12/2019
doi>: https://doi.org/10.25247/2447-861X.2019.n248.p690-712
Esta obra está licenciada com uma Licença Creative
Commons Atribuição 4.0 Internacional.
Como ser citado (modelo ABNT)
LIMA, Uallace Moreira. Insertion of Brazil in Global
Value Chains after labor reform. Cadernos do CEAS:
Revista Crítica de Humanidades. Salvador, n. 248,
set./dez., p. 690-712, 2019. DOI:
https://doi.org/10.25247/2447-861X.2019.n248.p690-712
Abstract
The process of fragmentation of production known a s Global Value
Chains (GVCs) has ex tinguished the need to acquire competence in
all aspects of the production of a good and has enabled developing
countries t o join a cross-border cooperation network, sharing
production and specializing in only one or a few stages of production
activities involved in the production of a final good, making the
importance of services for productive activities even more evident.
Many studies have emerged t o identify the main policies that could
lead t o greater insertion of countries in GVCs. Besides policies of
openness t o t rade and foreign direct invest ment, one of t he
measures presented for cost reduction and greater competitiveness
is labor reform. In Brazil t here was a labor reform in 2017. The main
argument for its implementation was the generation of more jobs,
giving the country greater competitiveness to its industry and,
consequently, bett er conditions for insertion in international trade.
This paper aims to analyze the insertion of t he Brazilian economy in
the GVC before and after t he labor reform, showing that the
indicators and studies point to the fact that t here was no upgrade in
the insertion of the country in GVC, indicating t hat in
Brazil predominates a strategy of limited insertion in the GVC , as it
is based on activities related to the cost of cheap labor and low level
of technological intensity, such as the production of food, beverages,
textiles and shoes, among others.
Keywords: Global Value Chains. Labor Reform. Brazilian Economy.
Resumo
O processo de fragmentação da produção conhecida como Cadeias
Globais de Valor (C GV) extinguiu necessidade de adquirir
competência em todos os aspectos da produção de um bem e
permitiu que os países em desenvolvimento pudesse se associar a
uma rede de cooperação t ransfronteiriça, partilhando a produção e
especializando-se em apenas uma ou algumas etapas das atividades
de produção envolvidos na confecção de um bem final, tornando
ainda mais evidente a importância dos serviços para as atividades
produtivas. Muitos estudos surgiram para identificar quais as
principais políticas que poderiam propiciar uma maior inserção dos
países nas CGV. Além de políticas de abertura ao comércio e ao
investimento estrangeiro direto, uma das medidas apresentadas
para a redução de custos e maior competitividade é a reforma
trabalhista. No Brasil houve uma reforma t rabalhista em 2017, cujo
principal argumento para a sua implementação foi a geração de mais
empregos, dar ao país maior competitividade à sua indústria e,
consequentemente, melhores condições de inserção no comércio
internacional. Este paper tem como objetivo analisar a inserção da
economia brasileira nas CGV antes e depois da reforma t rabalhista,
mostrando que os indicadores e estudos apontam para o fato de que
não houve um uprading na inserção do país na C GV, indicando que
no Brasil predomina uma estrat égia limitada de inserção nas CGV,
pois está fundada em atividades ligadas à custo de mão de obra
barata e com baixo nível de intensidade tecnológica, tais como
produção de alimentos, bebidas, têxteis e calçados, entre outros.
Palavras -chave: C adeias Globais de Valor; Reforma Trabalhista;
Brazilian Economy.
Cadernos do CEAS, Salv ador/Recife, n. 248, p. 690-712, set./dez., 2019
691
Insertion of Brazil in Global Value Chains after labor reform | Uallace Moreira Lima
Introduction
During the 1980s and 1990s, t here was a rapid industriali zation of several developing
countries (mainly in Eas t Asia) and a significant increase in South-Sout h trade, generating a
significant growth in the participation of these countries in the export of manufactured
products whereas intermediate inputs trade and foreign direct investment flows increase.
Trade agreements, s uch as th e General Agreement on Tariffs and Trade (G ATT), the
formation of economic blocs, such as the North American Free Trade Agreement, and, more
recently, th e unilateral l iberalization measures of developi ng countries are es sential for the
increase in the expo rts of industriali zed products by the newly i ndustriali zed economies, for
the increase of intra-indust ry trade, for the emergence of "sup ertrading" nations and for the
fragmentation of the value chain or the breakdown of production into globa l value chains, as
it was called to denominate th e p rocess of p roduction fragmentation (BALDWIN and
ROBER T-NICOUD, 2004 and 2010).
These cha nges allo wed for a process of productio n fragmentation, which causes the
extinction o f the need to acquire competence in all aspects of th e production proces s of a
good and all ows develop ing countries to a ssociate wit h a network of cross -border
cooperati on, sharing production it self and sp ecializing in only one o r a few steps o f the
productio n activities involved in the manufacturing of a final good .
This new form o f international divisio n of labor around t he structuring of the known
globa l value chains (GVC) has made the importance of services much more evident for
productive activities , since many of the activiti es that constit ute a value chain are services as
desig n activities, marketing, custo mer relations hips, etc, wh ich have made services an
integral and fundamental part of value chains.
Within such a scenario, many st udies have emerged to identify the main policies that
could lead to greater insertion of countries into GVC. In add ition to policies for opening up to
trade and foreig n direct investment , t he measure presented to reduce costs and greater
competit iveness is the labor reform, with t he aim of making labor laws more flexibl e. There
was a labor reform in Brazil in 2017. The main argument for it s imp lementatio n was the
generation o f more jobs , giving the national industry greater compet itiveness and,
consequently, better conditio ns of insertion into international trade.

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