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Boosting Investment and Growth: The Role of Social Pacts in the Brazilian Automotive Industry

  • Mahrukh Doctor
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    The 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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    File URL: http://www.tandfonline.com/doi/abs/10.1080/13600810601167629
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    Article provided by Taylor & Francis Journals in its journal Oxford Development Studies.

    Volume (Year): 35 (2007)
    Issue (Month): 1 ()
    Pages: 105-130

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    Handle: RePEc:taf:oxdevs:v:35:y:2007:i:1:p:105-130
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