Boosting investment and growth: the role of social pacts in the Brazilian automotive industry

Doctor, Mahrukh

Abstract

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.

Citation

Doctor, M. (2007). Boosting investment and growth: the role of social pacts in the Brazilian automotive industry. Oxford development studies, 35(1), 105-130. https://doi.org/10.1080/13600810601167629

• Journal Article Type: Article
• Online Publication Date: Jun 22, 2007
• Publication Date: 2007-03
• Journal: Oxford Development Studies
• Print ISSN: 1360-0818
• Publisher: Routledge
• Peer Reviewed: Peer Reviewed
• Volume: 35
• Issue: 1
• Pages: 105-130
• DOI: https://doi.org/10.1080/13600810601167629
• Keywords: Geography, Planning and Development; Development
• Public URL: https://hull-repository.worktribe.com/output/409348
• Publisher URL: https://www.tandfonline.com/doi/abs/10.1080/13600810601167629