Brazil's economic strategies are adversely affecting its productivity by maintaining a closed economy that shelters inefficient firms from competition. This insular approach raises the costs of machinery, parts, and essential imported inputs, leading to a lack of competitive pressure among businesses to innovate and improve their efficiency. Empirical evidence supports the argument that countries with more liberalized trade systems tend to experience higher productivity growth. Studies indicate that Brazil could benefit from trade liberalization by allowing more efficient firms to emerge and thrive, enhancing overall economic performance.

Examples from other countries reinforce this view, such as findings from Chile, where trade liberalization resulted in significant productivity gains and a shift towards more efficient producers. Additional research shows that lowering tariffs on intermediate goods can lead to remarkable increases in productivity. Thus, opening Brazil's economy may not only foster competition but also enable productive firms to import goods more effectively, compete vigorously, and disseminate technology with fewer restrictions.

However, it is important to note that while trade liberalization offers many advantages, it also comes with challenges, including potential losses for some sectors. Despite the risks, shifting to a more open economic model could ultimately lead to a more dynamic and innovative economy, better positioned to engage with global markets and improve living standards for the population.