Industry and underdevelopment

World Investment Report

This article examines the relationship between capital market development and industrial structure during the early stages of industrialization, contrasting the experiences of Brazil, Mexico, and the United States. It argues that constraints placed on the formation of credit intermediaries in Latin America by poorly defined property rights and government regulatory policies produced greater concentration in the Mexican and Brazilian cotton textile industries than that which developed in the United States. The relationship between the efficiency with which an economy mobilizes capital funds and the industrial structure that an economy develops has long been of interest to economic historians, development economists, and organizational theorists.' Surprisingly, almost all of the research to date has focused on countries that had, by world standards, fairly well developed capital markets. Little work has been done on the relationship between capital market integration and the degree of intraindustry concentration in economies with truly underdeveloped capital markets such as are found in Latin America and Africa. Moreover, the studies on developed economies have largely focused on the very recent past: lack of data has prevented researchers from developing systematic, cross-national estimates of concentration for the period prior to the Great Depression.2

Industrial Concentration and the Capital Markets: A Comparative Study of Brazil, Mexico, and the United States, 1830–1930

BARNES J and KAPLINSKY R (2000) Globalization and the death of the local firm? The automobile components sector in South Africa, Reg Studies 34 , 797-812 As in the case of many developing countries, South African industry is facing a new competitive environment as trade barriers fall This involves both the need to enter external markets and to cope with new entrants in the domestic market In the case of the South African automobile assembly industry, responding to this new global environment has increasingly meant that domestic subsidiaries are being integrated into the global strategic operations of their parent companies This is increasingly leading them to the foreign sourcing of components, in part because of perverse and unintended consequences of the Motor Industry Development Plan Where local production of components is involved, there is decreasing space for locally-owned component suppliers and almost no space for component suppliers using local technology South African component supplie

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Globalization and the Death of the Local Firm? The Automobile Components Sector in South Africa

The measurement of innovation is a complex and ambiguous challenge. Two broad families of measures have been used: those focusing on inputs and those focusing on outputs. Each has its strengths and weaknesses, but neither is able to capture the growing importance of product innovation adequately. In this paper we attempt to throw more light on the measurement of product innovation through the complementary use of data on unit-price and market-share. The analysis is distinctive through its exclusive use of trade data. These measures are applied to the global furniture industry through an analysis of imports into the EU between 1989 and 2001.

Globalization and upgrading: what can (and cannot) be learnt from international trade statistics in the wood furniture sector?

This paper presents a synopsis of recent NBER studies of the history of corporate governance in Canada, China, France, Germany, Japan, India, Italy, the Netherlands, Sweden, the United Kingdom, and the United States. Together, the studies underscore the importance of path dependence, often as far back into preindustrial period; legal system origin, though in a more nuanced form than mere statutory shareholder rights; and wealthy families. They also clarify the roles of ideologies, business groups, trust, institutional transplants, and politics in institutional evolution and financial development. Other themes are the universality of business insiders' investments in, entrenchment, and a possible behavioral basis for this.

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Industry and underdevelopment

Citations

World Investment Report

Industrial Concentration and the Capital Markets: A Comparative Study of Brazil, Mexico, and the United States, 1830–1930

Globalization and the Death of the Local Firm? The Automobile Components Sector in South Africa

Globalization and upgrading: what can (and cannot) be learnt from international trade statistics in the wood furniture sector?

The Global History of Corporate Governance: An Introduction

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