The Microcomputer Industry in Brazil: The Case of a Protected High-Technology Industry

by Eduardo Luzio

Overview

In 1977 Brazil initiated the market reserve policy to protect and reserve its domestic market for its own computer manufacturing companies. The basic assumptions on which its plans rested were fatally flawed, however, and the experiment failed to a large degree. This work investigates to what extent the policy, so carefully fashioned, fell short of its target and left Brazil with expensive and poorly made products. The author also evaluated the important and influential role of Brazil's bureaucracy and military. Scholars of economic development, industrial organization, economic history, and technology should find this well-documented work valuable.

Product Details

ISBN-13:	9780275949235
Publisher:	Bloomsbury Academic
Publication date:	03/20/1996
Series:	Foundations of Social Inquiry
Edition description:	New Edition
Pages:	192
Product dimensions:	6.14(w) x 9.21(h) x 0.50(d)

About the Author

EDUARDO LUZIO is in the Merger & Acquisition Department of Unibanco in Brazil./e He received his Ph.D. in Economics from the University of Illinois at Urbana-Champaign. He was born in Brazil, where he lived during most of the market reserve policy.

Table of Contents

Preface
Introduction
History of Informatics Policy in Brazil
First Period: Computers Before 1976 and the Origin of the Market Reserve Policy
Second Period: From CSN to the Informatics Law (1980-84)
The Third Period: "The Crucial Years" (1985-90)
The Fourth Period: The End of the Market Reserve: 1990-92
Final Comments
Analysis of the Institutional Evolution of the Market Reserve
The New Institutional Economics: Basic Concepts and Ideas
First Period: The Origin of the Policy and the Transition to SEI
Second Period: SEI and the Informatics Law
Third Period: The Market Reserve Under Democracy
Concluding Remarks
Structure and Other Characteristics of the Microcomputer Industry
Introduction
The Value and Quantity Produced
Smuggling and the Demand for Microcomputers
Entry and Concentration
Main Producers and the Average Firm
The Cost Structure
Final Considerations
Prices and Performance
Introduction
Prices
The Costs of Protection
Conclusion
Industry Performance and Opportunity Cost of Protection
Causes of the Bad Performance of the Market Reserve
Mistakes and Lessons
Appendix 1: Summary of Legislation
Appendix 2: Technical Details of the Hedonic Model and the Consumer Surplus Measure
Appendix 3: Detailed Results of Hedonic Regressions
Bibliographical References
Index

Editorial Reviews

Investigates the failure of Brazil's 15-year policy to support the microcomputer industry by excluding imported computers. Explores the history of the market reserve policy and regulation during its entire period from 1976 to 1992, applies the New Institutional Economics paradigm to show how the institutional environment affected the conduct of firms, describes the market structure and firms' conduct, evaluates the industry's performance, and summarizes the lessons for other countries considering the same path. Annotation c. Book News, Inc., Portland, OR (booknews.com)

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