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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.

Suggested Citation

  • Luzio, Eduardo & Greenstein, Shane, 1995. "Measuring the Performance of a Protected Infant Industry: The Case of Brazilian Microcomputers," The Review of Economics and Statistics, MIT Press, vol. 77(4), pages 622-633, November.
  • Handle: RePEc:tpr:restat:v:77:y:1995:i:4:p:622-33
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    Cited by:

    1. Harold L. Cole & Lee E. Ohanian & Alvaro Riascos & James A. Schmitz, 2006. "Latin America in the rearview mirror," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Sep.
    2. Carson, Matthew., 2010. "Guiding structural change : the role of government in development," ILO Working Papers 994550973402676, International Labour Organization.
    3. Saure, Philip, 2007. "Revisiting the infant industry argument," Journal of Development Economics, Elsevier, vol. 84(1), pages 104-117, September.
    4. Ferreira, Pedro Cavalcanti & Pessôa, Samuel de Abreu & Veloso, Fernando A., 2014. "Distortions in the investment goods sector and productivity decline," FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) 755, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
    5. Donald Hay, 2015. "Industrial Policy in Brazil: a Framework," Discussion Papers 0074, Instituto de Pesquisa Econômica Aplicada - IPEA.
    6. Harrison, Ann & Rodríguez-Clare, Andrés, 2010. "Trade, Foreign Investment, and Industrial Policy for Developing Countries," Handbook of Development Economics, Elsevier.
    7. repec:ilo:ilowps:455097 is not listed on IDEAS
    8. 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.
    9. 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.

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