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.

• 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