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Measuring the Performance of a Protected Infant Industry: The Case of Brazilian Microcomputers

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  • Luzio, Eduardo
  • Greenstein, Shane

Abstract

Until the beginnings of the Collor presidency in 1990, the Brazilian government strongly protected domestic producers of electronics goods. Using hedonic methods, the authors analyze systematic evidence of the performance of the Brazilian microcomputer industry and compare it with international standards. Their analysis highlights rapid rates of advance in Brazil but lower rates than potential international competition. Technical frontiers typically lagged price/performance practices in international markets by at least three years and by as much as five. Foregone buyer surplus due to protection had to be quite high, approaching 20 percent of domestic expenditure on microcomputers. Copyright 1995 by MIT Press.

Suggested Citation

  • Luzio, Eduardo & Greenstein, Shane, 1995. "Measuring the Performance of a Protected Infant Industry: The Case of Brazilian Microcomputers," The Review of Economics and Statistics, MIT Press, vol. 77(4), pages 622-633, November.
    • Handle: RePEc:tpr:restat:v:77:y:1995:i:4:p:622-33
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    Cited by:

    1. Harold L. Cole & Lee E. Ohanian & Álvaro José Riascos & James A. Schmitz, 2006. "Latin America in the rearview mirror," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 30(Sep).
    2. Carson, Matthew., 2010. "Guiding structural change : the role of government in development," ILO Working Papers 994550973402676, International Labour Organization.
    3. Witness Simbanegavi, 2019. "The industrial policy debate State of affairs August 2019," Occasional Bulletin of Economic Notes 9482, South African Reserve Bank.
    4. Saure, Philip, 2007. "Revisiting the infant industry argument," Journal of Development Economics, Elsevier, vol. 84(1), pages 104-117, September.
    5. Harrison, Ann E. & Rodriguez-Clare, Andres, 2009. "Trade, Foreign Investment, and Industrial Policy," MPRA Paper 15561, University Library of Munich, Germany.
    6. Ferreira, Pedro Cavalcanti & Pessôa, Samuel de Abreu & Veloso, Fernando A., 2014. "Distortions in the investment goods sector and productivity decline," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 755, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    7. Kalouptsidi, Myrto & Barwick, Panle Jia & Zahur, Nahim Bin, 2019. "China’s Industrial Policy: an Empirical Evaluation," CEPR Discussion Papers 13889, C.E.P.R. Discussion Papers.
    8. Donald Hay, 2015. "Industrial Policy in Brazil: a Framework," Discussion Papers 0074, Instituto de Pesquisa Econômica Aplicada - IPEA.
    9. Richard Damania, 2003. "Protectionist Lobbying and Strategic Investment," The Economic Record, The Economic Society of Australia, vol. 79(244), pages 57-69, March.
    10. Doms, Mark & Forman, Chris, 2005. "Prices for local area network equipment," Information Economics and Policy, Elsevier, vol. 17(3), pages 365-388, July.
    11. Harrison, Ann & Rodríguez-Clare, Andrés, 2010. "Trade, Foreign Investment, and Industrial Policy for Developing Countries," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4039-4214, Elsevier.
    12. repec:ilo:ilowps:455097 is not listed on IDEAS
    13. World Bank, 2010. "Bhutan Investment Climate Assessment Report : Vitalizing the Private Sector, Creating Jobs, Volume 2," World Bank Publications - Reports 12872, The World Bank Group.
    14. Luiz de Mello, 2009. "Brazil's Growth Performance: Achievements and Prospects," WIDER Working Paper Series RP2009-55, World Institute for Development Economic Research (UNU-WIDER).
    15. Mesquita Moreira, Mauricio & Frischtack, Claudio, 2014. "Where is Brazil going? Taking stock of recent trends in industrial and trade policies and the challenges ahead," MPRA Paper 59737, University Library of Munich, Germany.
    16. World Bank, 2010. "Bhutan Investment Climate Assessment Report : Vitalizing the Private Sector, Creating Jobs, Volume 1. Summary Report," World Bank Publications - Reports 12871, The World Bank Group.

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