Industrial Upgrading in Brazil

President's Global Innovation Fund
Columbia Global Centers | Latin America (Rio de Janeiro)

There is broad agreement among policy-makers and researchers that industrial upgrading—interpreted broadly as improvements in productivity, product quality, and export performance among manufacturing firms—is an important element of growth in Brazil and other developing countries.

Principal Investigator

Eric Verhoogen
Associate Professor of Economics

Eric Verhoogen's main research area is industrial development—applied microeconomic research on firms in developing countries. This area overlaps with the fields of development economics, international trade, labor economics, and industrial organization.  MORE

Professor Eric Verhoogen has proposed two related projects to advance our understanding of the industrial upgrading process, to leverage the resources in Rio de Janeiro of Columbia Global Centers | Latin America, and to raise Columbia's profile in Brazil around these issues.

The first project is an investigation of the interaction between labor-market regulation—in particular, the minimum wage—and the behavior of manufacturing firms. The project will draw on detailed, confidential data on Brazilian manufacturers to investigate a novel hypothesis regarding possible pro-innovation effects of minimum wages. The second project, still in an exploratory stage, is to provide analytical input into the development of a new regional development strategy for the state of Rio de Janeiro.