The Regional Impact of National Policies: The Case of Brazil

Edward Elgar Publishing
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Brazil is a country of continental proportions whose gross domestic product is unevenly distributed among its various regions. The impact of general domestic economic policies has often been perceived as not being regionally neutral, but as reinforcing th
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About the author

WERNER BAER is Professor of Economics at the University of Illinois at Urbana-Champaign./e Previously he taught at Harvard, Yale, and Vanderbilt, and he has been a visiting professor at the University of Sao Paulo, Catholic University of Rio de Janeiro, and the Instituto Tocuato De Tella in Buenos Aires. He specializes in the study of Latin American economies, including the process of industrialization, its positive and negative impact, the region's inflationary experiences, the role of the state, and the process of privatization.

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Additional Information

Edward Elgar Publishing
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Published on
May 1, 2012
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Best For
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Business & Economics / Development / Business Development
Business & Economics / Development / Economic Development
Business & Economics / Development / General
Business & Economics / Government & Business
Business & Economics / Structural Adjustment
Political Science / Public Policy / Economic Policy
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Content Protection
This content is DRM protected.
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Eligible for Family Library

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From the Hardcover edition.
The past century has witnessed profound transitions in Brazil’s economy: from a surge of industrialization connected to export economy, to state projects of importsubstitution industrialization, followed by a process of neoliberal global market integration. How have Brazilian entrepreneurs and businesses navigated these contexts?

This comprehensive text explores the institutional and sectoral structure of the Brazilian economy through a collection of new case studies, examining how key institutions work within Brazil’s specific economic, political and cultural context. Offering a long-term evolutionary perspective, the book explores Brazil’s economic past in order to offer insights on its present and future trajectory. The contributions gathered here offer fresh insights into representative sectors of Brazil’s economy, from aerospace to software, television, music and banking, paying particular attention to sectors that are likely to drive future growth. Chapters include questions about the roles of foreign and state capital, changes in market regulation, the emergence of new technologies, the opening of markets, institutional and organizational frameworks, and changing management paradigms.

When examined together, the contributions shed light not only on Brazilian business history, but also on the country as a whole. Brazil’s Economy: An Institutional and Sectoral Approach offers fascinating reading for anyone with an interest in: Latin American Economics; the business history of the region; and in doing business in present-day Latin America.

Examine the costs and benefits of fiscal “wars” between Brazilian states

Latin American Business examines Brazil’s use of fiscal incentives to attract investors to help remedy disparities in the country’s regional distribution of income. Since the 1990s, individual Brazilian states have taken the initiative in trying to lure domestic and foreign firms to locate within their borders, targeting the automotive industry, textiles, and shoe production. But their efforts have led to mixed results and questions about whether these fiscal wars have been legitimate attempts at regional economic development or simply a distortion in the allocation of resources. This insightful collection of case studies and essays sheds considerable light on the issue.

For several generations, the notion has been debated both in advanced industrial countries and in developing countries that regional differences in income will gradually be eliminated as poor regions (where money is scare but labor is not) benefit from the inflow of investments. In reality, this has rarely happened; Latin American Business examines why that has been the case in Brazil. The book’s contributors fuel this continuing debate, analyzing topics that include Bahia’s efforts to attract a Ford plant, the Mercedes-Benz project in Juiz de Fora, the case of Renault in Paraná, fiscal incentive programs in Pernambuco, and the tax incentive policies of Ceará.

Latin American Business includes:
an evaluation of the costs and benefits of federal and state incentives given to Ford Motor Company to attract a plant in Bahia
an analysis of the use of state and municipal incentives by the state of Minas Gerais in dealing with Mercedes-Benz Corporation
a look at Paraná’s agreement with Renault and the degree to which it has created jobs and attracted other investments
an examination of structural changes in the Brazilian automotive industry
a look at the Brazilian automotive industry in the 1990s
an evaluation of the results of Pernambo’s fiscal incentives program from 1996 to 2003
a discussion of the economic logic for tax incentives
a look at the economic effects of regional tax incentives
and much moreLatin American Business is an essential resource for academics, business practitioners, public policymakers, and anyone working in the international development community.
This collection examines the important and topical issue of the economic, social and environmental implications of concerted attempts to diversify energy sources away from fossil fuels. The book expertly examines this issue by focussing on the contrasting experiences of two major economies; one developed, and the other a rapidly expanding, emerging market.

Energy, Bio Fuels and Development evaluates the experience of Brazil, with elements of that of the US highlighted for the purpose of comparison. A key area of concern surrounds the causes and consequences of the contrasting routes to biofuel production represented by sugar cane (in Brazil) and corn (in the US). The book also places the recent biofuels drive in perspective by discussing the broader energy policy context. The book shows the complexity and interdependence of the issues involved in moving a society reliant on non-renewable energy sources to one based on alternative sources of energy.

The key conclusion to emerge is that Brazil, in pursuing a flexible mix of fossil fuels and bio-fuels, has greatly diminished its exposure to exogenous energy shocks. The US experience – in particular its development of corn-based ethanol – has been more problematic, though by no means without successes. It is argued that bio fuels should not be seen as a panacea. There are clear limits to the efficiency and cost effectiveness of current biofuel production technologies while there remain concerns surrounding potentially adverse effects on food production and rural livelihoods.

This book should be an excellent resource for students focussing on economic development, particularly in the areas of energy, biofuels, rural development and food supply.

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