GTAP Resources: Resource Display

GTAP Resource #1278

"Transnational Companies and Changes in Comparative Advantages in Brazil"
Authors: Cinquetti, Carlos


Abstract
The paper examines the impact of Transnational Company (TNC) affiliates upon the slow transition from import substitution to export expansion in Brazil from 1967 to 1988. Relying on general equilibrium approaches to TNCs and international trade, we propose a regression model in which the change in revealed comparative advantage is explained by a set of trade theory variables together with a variable standing for TNCs. The idea is to control for sector performances through their common causes, instead of completely disregarding firms’ location patterns. The variables are in panel data form: twenty manufacture sectors in four periods. Besides some revealing results associated with the traditional trade theory variables, analysis showed that foreign affiliates contributed to the slow export expansion in manufacture. Additional analyses managed to uncover their causes: the anti-trade location pattern of these companies, and their negative impact on sector competition intensity – the precise source of the latter could not be identified here - which, jointly, outweighed the positive effect on exports conferred by TNC ownership advantages.


Resource Details () GTAP Keywords
Category: 2003 Conference Paper
Status: Published
By/In: Presented at the 6th Annual Conference on Global Economic Analysis, The Hague, The Netherlands
Date: 2003
Version:
Created: Cinquetti, C. (4/30/2003)
Updated: Bacou, M. (5/6/2003)
Visits: 2,367
- South America


Attachments
If you have trouble accessing any of the attachments below due to disability, please contact the authors listed above.


Public Access
  pdf File format PDF Version  (91.7 KB)   Replicated: 0 time(s)


Restricted Access
No documents have been attached.


Special Instructions
No instructions have been specified.


Comments (0 posted)
You must log in before entering comments.

No comments have been posted.