The Export Behavior Of Domestic And Transnational Firms In Brazilian Manufacturing

Abstract

Some developing nations face mounting foreign debt and a need to generate greater export earnings.  Reaction by individual firms to government solutions (e.g. export incentives) will determine whether such efforts will succeed.  Transnational corporations are often viewed as superior to Brazilian firms as exporters and evidence here suggests they are.  As foreign ownership rises so does export propensity.  The influence of export subsidies is mixed suggesting that overall government policy is more important than one specific policy.  Comparative advantage does not appear to exert a strong influence at the firm level.