Tag Archives: Foreign Direct Investments

The Evolution of Privatization in Brazil: The Case of Embraer (Published)

State participation in the economy has been intensely debated over the past three decades. In Brazil, especially after the advent of the Federal Constitution in 1988. Privatization in Brazil, however, was instituted by Law 8.130/90, which established the National Plan for Privatization, aiming at transferring to the private sector activities unduly exploited by the public sector. In this article, we investigated one of the most significant privatizations in Brazilian history, the case of Embraer, the world’s third largest civil aircraft manufacturer. Key findings pointed out a complex privatization process, including golden share vetoes and institutional challenges faced by Embraer, such as the first Brazilian company to adopt the International Financial Reporting Standards (IFRS) fully. In addition, the careful analysis suggested implications for the reduction of public debt. Also, the resumption of investments in companies and activities transferred to the private sector, modernization of the country’s industrial park, increasing its competitiveness, and reinforcing business capacity in Embraer’s jet C-series sector and military aircraft, for instance. Also, implications for the public administration to focus its efforts on actions where the State’s presence is necessary for achieving national priorities. Finally, the strengthening of the capital market, as well as the democratization of the ownership of the capital of Embraer are topics to be debated in the present article.

Keywords: Foreign Direct Investments, National Security, Privatization, civil aviation, economic growth

The Mojo, Dodgy, And Dingy Dominance of Domestic Deeds on Foreign Direct Investment in Emerging and Transition Economies (Published)

Insufficiencies of empirical research were found regarding the flow of Foreign Direct Investment (FDI) to Emerging and Transition Economics (ETEs) as compared to other economies.  This study was designed to analyst domestic deeds that positively, negatively, and horridly affected the flow of FDI to ETEs and determine if they were the same for all ETEs.  The results paralleled existing FDI literature including extensive and established theories.  First, bivariate and multiple regressions analysis were conducted to determine whether ETEs domestic deeds (political stability, domestic credit, level of GDP-ETEs, level of corruption, and availability of mineral resources) significantly impact on the inflow of FDI to their countries. The correlation amongst GDP and FDI was significant (r =.91, p < .01), political stability was significant (r =-.23, p <.05), and availability of domestic credit was significant (r =.27, p < .05). Additionally, analysis on regional deeds variables (telephone lines and RI) revealed that telephone lines was a robust predictor of FDI (ß = .38, p < .05) and RI (ß = .57, p < .05).

Keywords: : Emerging Economies, Domestic Deeds on Foreign Investment, Foreign Direct Investments, Sam Agbi, Transition Economies, and African Emerging Economies.