Abstract: The Brazilian automotive industry serves as a typical example of a developing nation's foreign capital-dependent industrial development strategy. Building upon an exposition of the historical evolution of Brazil's automotive industry, this paper examines the behavioral choices of foreign capital and the role of the Brazilian government, considering the domestic industrial development conditions and the international environment of the industry. The Brazilian experience demonstrates that the foreign capital-dependent industrial development model and its potential outcomes are, in essence, the result of a repeated game between foreign capital and the host country's government, given the specific local advantages of the nation.

Authors: Chen Taotao, Chen Xiao

Published in: International Economic Cooperation, 2014, No. 04, pp. 6-12