Publication:
Debating deindustrialization: a comparative analysis of Brazil and Mexico

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Authors
Kahkonen, David N.
Subjects
Brazil
Mexico
Deindustrializing
Premature Deindustrialization
Economic Stagnation
Economic Policy
Import-Substitution Industrialization
Neo-liberal Reforms
Foreign Direct Investment
NAFTA
Export-led Industrialization
Labor Export
Dutch Disease
Resource Curse
Exchange Rate
Outsourcing
North-South Relationships
Regressive Specialization
Manufacturing
Maquiladora
Remittances
New International Division of Labor.
Advisors
Nieto-Gomez, Rodrigo
Date of Issue
2014-09
Date
Sep-14
Publisher
Monterey, California: Naval Postgraduate School
Language
Abstract
Brazil and Mexico are often studied as opposing models of neoliberal reform, yet assessments of each model suggest that the economic growth of both countries has been relatively stagnant. Many theories address possible causes of their stagnation, but the prospect of premature deindustrialization has received little attention. Could premature deindustrialization be a source of economic stagnation in Brazil and Mexico, and if so, how can these two cases help developing countries avoid potential economic pitfalls? A comparison of Brazil and Mexico’s past trade agreements, policies, and economic struggles reveals that the countries followed similar paths until neo-liberal reforms. Since opening their economies to the global markets, the two countries have followed vastly different trajectories, yet both continue to experience economic stagnation. This thesis takes a close look into each country, highlighting trends that have led each state to experience premature deindustrialization. The thesis concludes that both Brazil and Mexico have experienced premature deindustrialization, albeit in different forms and for distinctive reasons. The findings of this thesis are intended to spur further research into deindustrialization as a possible cause of economic stagnation in the two largest economies of Latin America. The results could prove helpful to developing neighbors in the region.
Type
Thesis
Description
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Department
National Security Affairs
Organization
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NPS Report Number
Sponsors
Funder
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Distribution Statement
Approved for public release; distribution is unlimited.
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.
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