Inovar Auto : Evaluating Brazil's Automative Industrial Policy to Meet the Challenges of Global Value Chains
Brazil's automotive industry is unwell. Productivity and trade performance are low, consumer prices are high, local companies are bit players both at home and abroad, and innovation is almost nonexistent. The cumulative (opportunity) costs of...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/100851511798447023/Inovar-auto-evaluating-Brazils-automative-industrial-policy-to-meet-the-challenges-of-global-value-chains http://hdl.handle.net/10986/28947 |
| Summary: | Brazil's automotive industry is
unwell. Productivity and trade performance are low, consumer
prices are high, local companies are bit players both at
home and abroad, and innovation is almost nonexistent. The
cumulative (opportunity) costs of Brazil's
protectionist automotive policies, which have been in place
in some form since the 1950s – while immeasurable – are
certainly very high. However, it is not accurate to say that
they have failed, since Brazil would probably not have an
automotive industry today without them, at least not one
that employs nearly 500,000 workers in the manufacturing
sector. According to the most recent figures, 89 percent of
vehicles sold in Brazil were produced in the country, and
very recently, exports have surged to 30 percent of
production. However, Brazil has a large trade deficit in
automotive parts and components and finished vehicle exports
are volatile, used mainly as a 'pressure relief
valve' during downturns in the domestic market. Local
content figures are not available, signaling a major flaw in
the accountability and transparency of Brazil’s automotive
industrial policy regime. |
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