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Engines of Growth - The State and Transnational Auto Companies in Brazil (Hardcover, Revised)
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Engines of Growth - The State and Transnational Auto Companies in Brazil (Hardcover, Revised)
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In the 1950s, Brazil prohibited car imports and forced
transnational auto companies either to abandon the market or
manufacture vehicles within the country. Although currently
contending approaches to economic development would suggest that
this type of industrialization policy would fail in the
political-economic context of postwar Brazil, the plan was
successful according to a variety of criteria. The Brazilian auto
industry would become the largest in the periphery. The book
explains the economic and political motivations behind the plan,
and why Brazil relied on foreign firms to do the job. It documents
the bargaining process between the Brazilian government and
transnational firms, estimates the cost incurred by the government
as a result of the plan, and provides new archival evidence that
shows that firms would not have invested without government
pressure. It argues that the current, polarized debate on the role
of the state in economic development must become more nuanced, as
the Brazilian auto case suggests that the effectiveness of state
policy can vary greatly across sectors and over time.
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