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The protection of the automobile industry in Europe and Mercosur

Author

Listed:
  • José Tavares de Araújo Jr.

Abstract

The auto industry is an international oligopoly that has a long tradition of influencingtrade negotiations and national policies. Due to the industry’s size and productionlinkages, the investment decisions made by the assembly firms often generate economic consequencesthat can be easily transformed into political power. This paper discusses the rulesimplemented by the European Union during this decade to face this challenge, highlights thedifferences in regard to the measures applied by the Brazilian government since 1995 andsuggests that the European policies are especially suitable for Mercosur. JEL Classification: L52; L62; L13; F13.

Suggested Citation

  • José Tavares de Araújo Jr., 1998. "The protection of the automobile industry in Europe and Mercosur," Brazilian Journal of Political Economy, Center of Political Economy, vol. 18(4), pages 499-514.
    • Handle: RePEc:ekm:repojs:v:18:y:1998:i:4:p:499-514:id:1148
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    File URL: https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1148/1133
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    More about this item

    Keywords

    Industrial policy; protectionism; oligopoly; auto industry;
    All these keywords.

    JEL classification:

    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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