Raul Gouvea

Sowing strategic alliances in the Americas

Purpose – The purpose of this paper is to investigate the impact of increasing trade and investment relations between China and Latin American economies. The paper focuses on the threats and opportunities that permeate this relationship.Design/methodology/approach – The paper surveys existing literature and secondary data in Spanish, Portuguese, and in English to investigate the different ramifications of this dynamic relationship between China and Latin American economies.Findings – After analyzing trade and investment trends and data, it is clear that Latin American economies must make changes to increase their participation in the Chinese market. Direct involvement with China is inherently risky, however, the opportunities obviously make the alliance necessary. Latin American economies are under increasing pressure to revamp their business environments and to implement long‐term strategies in order to compete more efficiently with China, domestically and in third‐markets. China has showed Latin America...

Resource-Based Innovation: The Case for the Amazon Region

Abstract The traditional view of economic regions has always focused on the resources of the region as inputs to a production function and not as a distinctive advantage to an innovation function. The Brazilian Amazon region has commonly been examined from an environmental perspective, although the region offers a complex economic-social-environmental landscape with numerous business opportunities. The Amazons economic development has resulted in changes to the regions economy and infrastructure, but the region is still perceived as a resource base for production of agricultural, mining, and forestry products. This article explores the unique resources that can enhance the regions technological development as a basis for economic growth and differentiation.

Building an equitable green economy: a Brazilian perspective

The transition from a carbon-driven economy to a green-driven economy demands a paradigm shift in institutions and change in infrastructure. This paper examines the Brazilian quest for a green and equitable economy. Brazil’s green liabilities range from a carbon-intensive transportation matrix to a poorly developed social infrastructure. Yet, Brazil offers one of the world’s most biodiverse landscapes, a large reservoir of fresh water and the world’s largest tropical forest. Using a ‘politics of attention’ perspective, we propose that it is precisely the mobility of the Brazilian economy that precludes its evolution as a vanguard of change. Its rising status as a part of the global economic agenda makes it accept globalization without making an effective paradigm shift toward the environment and social justice. A transition to a green economy cannot be achieved using management practices that drive a carbon-intensive economy.

Global trade in creative services: an empirical exploration

ABSTRACT While global trade continues to rise steadily, the role of creative goods and services has been increasingly recognised for their contribution to economic development and growth. Export markets are an important component of creative goods and services. We assess the stability of earnings from exports of creative services exports. Creative services reflect the fundamental aspects of an economy, not only for the traditional factors of production but also for intangibles such as human capital, animated creative and innovative spirit of citizens and the infrastructure items of education system, development of information and communications technology (ICT), intellectual property regime of patents and copyrights, tourism and hospitality services and affordability of non-traditional tools of creativity. We use various samples of countries to encompass factor-driven, efficiency-driven and knowledge-driven economies. These samples are used to assess the performance of exports of creative services over the period 2003–2012. The results indicate that knowledge-driven economies are in the best position to gain handsomely from export of creative services. The economies at different stages of development need different imaginative policies for both traditional development and creative industries development. The paper discusses implications for decision-makers, trade development policies, the states role in fostering the development of creative industries and trade in creative services, and the public--private partnerships. An inescapable conclusion is that governmental support (direct financial, various forms of subsidies, facilities building, various regulatory regimes, etc.) is as indispensable as it was for industrial, agricultural or ICT sectors of the economy.

Brazil's new defense paradigm

In 2015, Brazil has taken steps toward re-consolidating its domestic defense industry. In the 1980s, Brazil built a dynamic and diversified defense industry. The state-driven effort resulted in a tripod strategy, where the state, state-run companies, and their private sector became the pillars of Brazils defense industry. Brazil developed an export-driven defense industry; where close to 80–90% of its output was exported to Latin American, African, Arab, and Asian nations. In the 1980s, Brazil became the worlds fifth largest exporter of defense products and services, exporting to over 40 countries. In the 1990s and 2000s, Brazils defense industry suffered a dramatic reduction in size, diversification, and momentum. Successions of domestic political and economic policies have relegated Brazils once emerging defense industry to a marginal position in the global defense industry. This article analyzes future prospects, challenges, and growth strategies for Brazils defense industry.

BRIC national export performance: a portfolio approach

The BRIC countries (Brazil, Russia, India, and China) have expanded their export sector considerably in the last two decades. Their export portfolios range from commodities to knowledge-intensive products. In this paper, we use two portfolio approaches (Markowitz and single index models) to assess export diversification strategies. The results indicate that China’s export portfolio dominates the portfolios of Brazil, India, and Russia. China has a highly diversified export profile and also expresses the highest efficiency amongst the BRIC countries. Thus, we make several conclusions about the impact of BRIC countries on the global political economy: (1) export portfolios can be used as a measure of geo-political influence, (2) BRIC countries’ export performance approximates the economic behavior of a global ‘middle class,’ and (3) China’s dominance among the BRIC countries, particularly its diverse profile, largely represents the global economy. China’s portfolio beta for export is closest to the global portfolio beta.

Creative industries and economic growth: stability of creative products exports earnings

ABSTRACT The contribution of creative goods and services has been recognised as an important pathway to economic development. Both transnational organisations and national governments have been paying more attention to the creative industries. We use a sample of 57 countries, accounting for over 90% of creative products exports, over the period 2003–2011, to assess the stability of earnings from exports of creative products. We assess the sensitivity of countries’ exports of creative products to fluctuations in the global trade of creative products, using the Single Index Model (SIM) to analyse the export performance of countries’ export portfolios of creative products. Our results indicate that there are vast differences in the export performance of countries in our sample, indicating that the composition of a countrys creative exports portfolio, i.e. what it exports, has a direct impact on the performance of the export portfolio of creative products. Our study fills the lacuna of empirical examinations of creative products and their exports earnings. We discuss implications for governmental – national and local – policy-makers, export promotions policies, their roles in encouraging and nurturing the creative industries, and businesses and artisans themselves. The recognition of the importance of the creative industries is most gratifying.

US–Latin America’s security: moving through an inflection point?

ABSTRACT Recent elections in Latin America, such as those of Mauricio Macri in Argentina, Horacio Cartes in Paraguay, and the impeachment process of Dilma Rousseff in Brazil, point to a new direction in Latin American politics and away from the “hard left;” they also point to a new momentum in the security relationship between the US and Latin American countries. Former US President Obama’s 2016 trip to Cuba and Argentina was a clear demonstration of this new security paradigm and also a clear indication that there is a new momentum brewing in the US towards a rethinking and reshaping of security strategies and mindsets. This article will explore the multidimensional security relationship between the US and Latin American countries in light of recent changes in the US’ posture toward the region.

The Sinicization of Brazil's Defense Industry

Latin American countries, including Brazil, have in the past two decades embarked on an aggressive defense diversification strategy, moving away from traditional defense suppliers such as the U.S. and Western Europe. China has become in a short period of time a major player in a number of Latin American markets, not only at the trade and investment levels, but increasingly at the defense level. This paper explores China- Latin America’s defense dynamic relationship, paying heed to Brazil’s recent China defense relations. China is increasingly using its trade and investment leverage with Brazil to unbalance Brazil’s defense choices.