Determinants of productivity in the brazilian industry

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Industrial productivity in Brazil is sensitive to capacity utilization and employment changes, and also influenced by monetary conditions.
Capacity utilization accounts for over 17% of industrial productivity, while employment contributes 13.5% and M1 nearly 10%.
Increases in interest rates negatively impact productivity, indicating the need for sustainable macroeconomic conditions.
The industrial sector plays a crucial role in the Brazilian GDP, and its expansion may help control inflation and high interest rates.

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Analysis of productivity determinants in the Brazilian industry, highlighting interest rates and capacity utilization's effects.

Melo et al. (2025) studied this question.

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