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

Doctor, Mahrukh

Authors



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.

Journal Article Type Article
Publication Date 2007-03
Print ISSN 1360-0818
Electronic ISSN 1469-9966
Publisher Taylor & Francis (Routledge)
Peer Reviewed Peer Reviewed
Volume 35
Issue 1
Pages 105-130
APA6 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. doi:10.1080/13600810601167629
DOI https://doi.org/10.1080/13600810601167629
Keywords Geography, Planning and Development; Development
Publisher URL https://www.tandfonline.com/doi/abs/10.1080/13600810601167629
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