Structural Change in the Automotive Industry and Its Regional Impacts : The Case of Brazil

From the late 1980s onward, the Brazilian automotive industry has undergone significant change as it has embraced trade liberalization and growing inward FDI. Using an inter-regional input-output model, this paper analyses the evolution of the industry from a spatial perspective. It is shown that new investment has resulted in a more dispersed locational framework for the industry. However, not all the benefits of new investment are garnered by the recipient regions. The paper poses a number of policy questions which center on the issue of inter-regional dependence