IDEAS home Printed from https://ideas.repec.org/a/oup/indcch/v23y2014i5p1229-1260..html
   My bibliography  Save this article

Industrial policy and the creation of new industries: evidence from Brazil’s bioethanol industry

Author

Listed:
  • Santiago Mingo
  • Tarun Khanna

Abstract

Industrial policy programs are frequently used by governments to stimulate economic activity in particular sectors of the economy. This study explores how an industrial policy program can affect the creation and evolution of an industry and, ultimately, the long-term performance of firms. We examine the history of the Brazilian bioethanol industry, focusing on the industrial policy program implemented by the Brazilian government in the 1970s to develop the industry. We put together a novel data set containing detailed information about the history of bioethanol producers. Our findings show that plants founded during the industrial policy program tend to be, in the long run, more productive than those founded before the program was in place. Based on additional analyses and complementary fieldwork, we infer that the wave of acquisitions that occurred after the end of the industrial policy program had an important effect on the performance of the plants founded when the program was in place. Industrial policy, especially in conjunction with a competitive post-industrial policy business landscape, can succeed in nurturing competitive firms.

Suggested Citation

  • Santiago Mingo & Tarun Khanna, 2014. "Industrial policy and the creation of new industries: evidence from Brazil’s bioethanol industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 23(5), pages 1229-1260.
  • Handle: RePEc:oup:indcch:v:23:y:2014:i:5:p:1229-1260.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/icc/dtt039
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Carney, Michael & Estrin, Saul & Van Essen, Marc & Shapiro, Daniel, 2017. "Business groups reconsidered: beyond paragons and parasites," LSE Research Online Documents on Economics 87340, London School of Economics and Political Science, LSE Library.
    2. Mingo, Santiago & Ciravegna, Luciano & Morales, Francisco, 2024. "The impact of experience on the agglomeration of cross-border investments within a region: The case of private equity in emerging markets," International Business Review, Elsevier, vol. 33(2).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:indcch:v:23:y:2014:i:5:p:1229-1260.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/icc .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.