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State intervention for industrial growth: a comparison between Brazil and Japan

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  • Waldemiro Francisco Sorte Jr.

Abstract

This study examines recent industrial policies in Brazil, especially regarding the use of public procurement to stimulate the growth of domestic industries. It adds to the literature on development studies by presenting data on the recent Brazilian policy of offering margins of preference to domestic firms in public tenders and by conducting an initial analysis of the outcomes and prospects of such a policy. In addition, this paper explores the pattern of Japanese state intervention in the post-war period, which resulted in high levels of industrial and economic growth, in order to make a comparison with current Brazilian efforts to promote industrial development. This study identifies the lack of a clear focus on strategic industrial sectors and the absence of sector-specific measures for these industries as major constraints in recent Brazilian industrial policies. On top of that, it argues that the level of information exchange between the government and private firms in Brazil is insufficient to promote steady industrial growth and transformation in the long run.

Suggested Citation

  • Waldemiro Francisco Sorte Jr., 2016. "State intervention for industrial growth: a comparison between Brazil and Japan," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 12(1/2), pages 1-27.
    • Handle: RePEc:ids:ijpubp:v:12:y:2016:i:1/2:p:1-27
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    References listed on IDEAS

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    1. Helen Shapiro, 2007. "Industrial Policy and Growth," Working Papers 53, United Nations, Department of Economics and Social Affairs.
    2. Marcus Noland & Howard Pack, 2005. "The East Asian Industrial Policy Experience: Implications for the Middle East," Working Paper Series WP05-14, Peterson Institute for International Economics.
    3. Joseph E. Stiglitz & Justin Yifu Lin (ed.), 2013. "The Industrial Policy Revolution I," International Economic Association Series, Palgrave Macmillan, number 978-1-137-33517-3, December.
    4. Esteban-Pretel, Julen & Sawada, Yasuyuki, 2014. "On the role of policy interventions in structural change and economic development: The case of postwar Japan," Journal of Economic Dynamics and Control, Elsevier, vol. 40(C), pages 67-83.
    5. Dore, Ronald, 2000. "Stock Market Capitalism: Welfare Capitalism: Japan and Germany versus the Anglo-Saxons," OUP Catalogue, Oxford University Press, number 9780199240616.
    6. Waldemiro Francisco Sorte Junior, 2013. "Assessing the efficiency of centralised public procurement in the Brazilian ICT sector," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 6(1), pages 58-75.
    7. Rainer Kattel & Veiko Lember, 2010. "Public procurement as an industrial policy tool an option for developing countries?," The Other Canon Foundation and Tallinn University of Technology Working Papers in Technology Governance and Economic Dynamics 31, TUT Ragnar Nurkse Department of Innovation and Governance.
    8. Shapiro,Helen, 1994. "Engines of Growth," Cambridge Books, Cambridge University Press, number 9780521416405, January.
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