Most post-communist economies are characterized by an initial collapse inaggregate output. Blanchard and Kremer (1997) and Roland and Verdier (1997)have recently modelled supply-side distortions — disorganization in the links of production — that can lead to a short-term output contraction...

The period between 2003-2005 illustrated a high growth in world trade. In this context, Brazil was able to revert its trade deficit, taking advantage of a considerable surplus. Nevertheless, this trade dynamism did not go hand in hand with national economic growth. This article makes an...