Macroeconomic effects of capital denationalization in Brazil: insights from agribusiness sector

Abstract

 This paper discusses the possible implications of the denationalization of capital 
process on macroeconomic variables in Brazil, using agribusiness as a proxy for this movement. 
Based on a post-Keynesian macroeconomic theoretical framework and a literature review on 
international trade and the macroeconomic conditions that favor productive internationalization, 
it was identified that Brazil offers a macroeconomic environment largely favorable to the entry of 
foreign capital, both for speculative and productive purposes. Empirically, through Central Bank 
databases on the external sector and sectoral analyses, it was identified that a large part of this 
capital entered Brazil in the form of mergers and acquisitions of already established national 
companies, promoting a massive exchange of administrative control. The results point to an 
increase in imports of goods and intra-firm financing, a reprimarization of the export agenda, and 
chronic deficits in the current account balance, forcing the country to increasingly transfer resources abroad in the form of interest payments and property rights, thus reinforcing the 
macroeconomic challenges arising from foreign relations.