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Measuring the Performance of a Protected Infant Industry: The Case of Brazilian Microcomputers

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  • Luzio, Eduardo
  • Greenstein, Shane

Abstract

Until the beginnings of the Collor presidency in 1990, the Brazilian government strongly protected domestic producers of electronics goods. Using hedonic methods, the authors analyze systematic evidence of the performance of the Brazilian microcomputer industry and compare it with international standards. Their analysis highlights rapid rates of advance in Brazil but lower rates than potential international competition. Technical frontiers typically lagged price/performance practices in international markets by at least three years and by as much as five. Foregone buyer surplus due to protection had to be quite high, approaching 20 percent of domestic expenditure on microcomputers. Copyright 1995 by MIT Press.

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Bibliographic Info

Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 77 (1995)
Issue (Month): 4 (November)
Pages: 622-33

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Handle: RePEc:tpr:restat:v:77:y:1995:i:4:p:622-33

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Web page: http://mitpress.mit.edu/journals/

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Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535

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Cited by:
  1. Harold L. Cole & Lee E. Ohanian & Alvaro Riascos & James A. Schmitz, Jr., 2004. "Latin America in the rearview mirror," Staff Report 351, Federal Reserve Bank of Minneapolis.
  2. Saure, Philip, 2007. "Revisiting the infant industry argument," Journal of Development Economics, Elsevier, vol. 84(1), pages 104-117, September.
  3. Carson, Matthew, 2010. "Guiding structural change : the role of government in development," ILO Working Papers 455097, International Labour Organization.
  4. World Bank, 2010. "Bhutan Investment Climate Assessment Report : Vitalizing the Private Sector, Creating Jobs, Volume 1. Summary Report," World Bank Other Operational Studies 12871, The World Bank.
  5. Harrison, Ann & Rodríguez-Clare, Andrés, 2010. "Trade, Foreign Investment, and Industrial Policy for Developing Countries," Handbook of Development Economics, Elsevier.
  6. World Bank, 2010. "Bhutan Investment Climate Assessment Report : Vitalizing the Private Sector, Creating Jobs, Volume 2," World Bank Other Operational Studies 12872, The World Bank.

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