ABSTRACT

In the cross-section analysis of the preceding paragraphs, it was implicitly assumed that production patterns are homogeneous within Brazilian industries. However, the discussion of economic policies of the Brazilian government provided some indication of intra-industry differences that are likely to influence the export performance of Brazilian enterprises. In addition to firm-specific policy interventions, the international competitiveness of enterprises may also be determined by other firm characteristics. The relationship between firm size and (fiscal) export subsidies is further accentuated by available information on 3,345 exporting firms. The results presented in the preceding paragraphs underline the relevance of a fairly disaggregated analysis in order to identify the major determinants of Brazilian export performance in the past and to evaluate the future export prospects of this country. The automobile industry also represents an interesting example of technological development based on foreign companies. It has been shown that subsidiaries of multinational corporations in Brazil played a major role in exporting manufactured goods.