Boosting Investment and Growth: The Role of Social Pacts in the Brazilian Automotive Industry
AbstractThe article examines why the automotive industry invested over US$20 billion in Brazil in the second half of the 1990s, focusing on how political economy factors influenced investment decisions. It is argued that, in a context of economic and policy uncertainty, when the state creates appropriate institutional mechanisms to communicate effectively with business and build a consensus for reform, in the process it also reduces investment risks. The argument is illustrated with the example of the Sectoral Chamber of the Automotive Industry (1991-95), and shows the impact of social concertation in neo-corporatist institutions on foreign direct investment.
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Bibliographic InfoArticle provided by Taylor and Francis Journals in its journal Oxford Development Studies.
Volume (Year): 35 (2007)
Issue (Month): 1 ()
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- Savita Bhat & N S Siddharthan, 2010. "Human Capital, Labour Productivity and Employment," Working Papers id:3110, eSocialSciences.
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