Immigration, Human Capital and Economic Growth in Brazil: A Multidimensional Analysis

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Abstract

This article examines the intricate relationship between immigration, human capital formation and economic growth in Brazil from 1890 to the present day. Employing a mixed-methods approach combining historical analysis and econometric modelling, this research investigates how different waves of immigration have contributed to human capital accumulation and subsequent economic development in Brazil. The findings reveal that immigration has significantly enhanced Brazil's human capital stock through three primary mechanisms: direct skill transfer, educational spillovers and institutional development. Econometric estimates suggest that a 1% increase in skilled immigrant population historically corresponded to a 0.3-0.5% increase in regional productivity, with substantial heterogeneity across time periods and regions. The research further demonstrates that the human capital benefits of immigration persist intergenerationally, with particularly strong effects in the industrial heartland of São Paulo. Policy implications highlight the potential value of targeted immigration policies that address Brazil's contemporary skills gaps while fostering knowledge transfer and entrepreneurship.

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