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Abstract
This dissertation examines the positive impacts that multinational corporate subsidiaries operating in Brazil can have on their host economy. Specifically, it examines the "logics" or combinations of forces to which subsidiaries respond in ways that enhance levels of international competitiveness in the Brazilian economy. The dependent variable, international competitiveness, is operationalized through four market-based variables: (1) Domestic economic linkages, (2) Research and development/human capital, (3) Price and quality levels, (4) Export performance. Using data gathered from 18 months of field research supplemented by a variety of secondary sources, the dissertation argues that variations in subsidiaries' behavior is attributable to at least 3 different logics. The first logic concerns ownership of the firm. Classical dependency theory relies heavily on logic of ownership arguments to explain low levels of international competitiveness among some Brazilian firms. In its simplest form, the theory argues that core-owned subsidiaries seek to extract resources and profits from the host country, without an interest in local development. State- or locally-owned firms, by contrast, are assumed to have interests in spurring development. The data in this dissertation contraindicate this hypothesis. More explanatory are state logics--such as the role that state policy plays in affecting firm behavior--and sector-specific logics, i.e., the type of industrial sector in which the firm operates. The computer industry and the pulp and paper industry provide the two primary cases examined in the dissertation.
