Varieties of local content: Comparing ideas and institutions in Brazil and Malaysia’s oil and gas sector
Yuri Kasahara et al.
What the paper says
Abstract Local content policies (LCPs) are key instruments of industrial policy used by middle-income countries (MICs) to capture segments of global value chains (GVCs). While, in principle, LCPs are very similar, in practice, they are highly diverse. What to prioritize, how to measure it, while promoting firms’ upgrade are decisions that create room for national varieties. Considering this background, we compare LCPs for the oil and gas sector in Brazil and Malaysia. Both countries have adopted different forms of LCP over time. While Brazil has adopted an inward-looking version of LCP focusing on import-substitution, job creation, and domestic production, Malaysia implemented a more outward-looking version, focusing on coownership by nationals and strategic supplier development with less emphasis on domestic production. We argue that two very diverse developmental policy paradigms embedded in each country explain these different trajectories. In Brazil, a productivist version of developmentalism focused on domestic output underplayed the importance of integrating in GVCs. In contrast, an ethnic-based version of developmentalism in Malaysia was more flexible and allowed a better integration of domestic companies in GVCs. Our analysis sheds light on the importance of the interaction between ideas, interests, and institutions, focusing on how LCPs can build internationally competitive companies.
1 citation
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.16 × 0.4 = 0.06 |
| M · momentum | 0.53 × 0.15 = 0.08 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.