The capacity of the Brazilian economy to adapt to recent changes in international constraints.

Summary The objective of this paper is to determine the capacity of the Brazilian economy to adapt to the recent changes in the nature and intensity of international constraints on all peripheral economies. To this end, its mode of international specialization, its power of attraction to foreign direct investment, its industrial structure, its income distribution dynamics and its innovation system are studied in detail. Finally, it is shown that the prospects for the Brazilian economy remain quite open.