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Ideas and Leadership in the Crafting of Alternative Industrial Policies: Local Content Requirements for the Brazilian Oil and Gas Sector

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Latin America is viewed as a region that has embraced a strategy of “open economy industrial policy” (OEIP). However, the region's transition to OEIP has been neither complete nor irreversible. In this article, we argue that economic development concepts and instruments introduced during Brazil's previous import-substitution industrialization regime still influence the country's industrial policy. By tracing the evolution of local content requirements (LCR) in the Brazilian oil and gas sector, we show that conflicts between inward-oriented and outward-oriented forms of industrial development have been the main source of recent policy changes in the country. In addition, we show how institutional structures affect the implementation of economic ideas. The country's centralized policymaking facilitated significant changes in the orientation of the LCR policy during the last twenty years.
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Document Type: Research Article

Publication date: April 1, 2019

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  • Comparative Politics is an international journal that publishes scholarly articles devoted to the comparative analysis of political institutions and behavior. It was founded in 1968 to further the development of comparative political theory and the application of comparative theoretical analysis to the empirical investigation of political issues. Comparative Politics communicates new ideas and research findings to social scientists, scholars, and students, and is valued by experts in research organizations, foundations, and consulates throughout the world.
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