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Engines of Growth

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  • Shapiro,Helen
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    Abstract

    In the 1950s, Brazil prohibited car imports and forced transnational auto companies either to abandon the market or manufacture vehicles within Brazil. Although current approaches to economic development would suggest that this type of industrialization policy would fail in the political-economic context of post-war Brazil, the plan was very successful. This 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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    Bibliographic Info

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    This book is provided by Cambridge University Press in its series Cambridge Books with number 9780521416405 and published in 1994.

    Order: http://www.cambridge.org/uk/catalogue/catalogue.asp?isbn=9780521416405
    Handle: RePEc:cup:cbooks:9780521416405

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    Web page: http://www.cambridge.org

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    Cited by:
    1. Helen Shapiro, 2007. "Industrial Policy and Growth," Working Papers 53, United Nations, Department of Economics and Social Affairs.
    2. Helpman, Elhanan & Trajtenberg, Manuel, 1994. "A Time to Sow and a Time to Reap: Growth Based on General Purpose Technologies," CEPR Discussion Papers 1080, C.E.P.R. Discussion Papers.
    3. Hoff, Karla, 1997. "Bayesian learning in an infant industry model," Journal of International Economics, Elsevier, vol. 43(3-4), pages 409-436, November.

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