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Export Pioneers in Latin America

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Export Pioneers in Latin America Columbia Law School Scholarship Archive Faculty Scholarship Faculty Publications 2012 Export Pioneers in Latin America Charles F. Sabel Columbia Law School, [email protected] Eduardo Fernández-Arias Inter-American Development Bank, [email protected] Ricardo Hausmann Harvard University, [email protected] Andrés Rodriguez-Clare University of California Berkeley, [email protected] Ernesto Stein Inter-American Development Bank, [email protected] Follow this and additional works at: https://scholarship.law.columbia.edu/faculty_scholarship Part of the Comparative and Foreign Law Commons, International Trade Law Commons, and the Law and Economics Commons Recommended Citation Charles F. Sabel, Eduardo Fernández-Arias, Ricardo Hausmann, Andrés Rodriguez-Clare & Ernesto Stein, Export Pioneers in Latin America, INTER-AMERICAN DEVELOPMENT BANK BOOK NO. IDB-BK-107; COLUMBIA LAW & ECONOMICS RESEARCH PAPER NO. 421 (2012). Available at: https://scholarship.law.columbia.edu/faculty_scholarship/1753 This Working Paper is brought to you for free and open access by the Faculty Publications at Scholarship Archive. It has been accepted for inclusion in Faculty Scholarship by an authorized administrator of Scholarship Archive. For more information, please contact [email protected]. Export success requires more than markets and entrepreneurship. This fascinating book documents in detail the contribution of industry EXPORT PIONeeRS collaboration, public support, and often luck to the launching of pioneer industries. It is a model of how case studies structured by economic theory can advance our understanding of economic development. Dani Rodrik IN LATIN AMERICA Rafiq Hariri Professor of International Political Economy EXPORT at the John F. Kennedy School of Government, Harvard University * * * This fascinating analysis of the emergence of eleven export sectors in Latin America is bound to become required reading for both development analysts P ION and practitioners. The rich exploration of the cases leads to three general conclusions: First, fast diffusion from the pioneer to other firms helps create the scale and flexibility required to overcome crucial coordination failures, EE including the capacity to demand required specific public inputs. Second, RS IN LATIN traditional industrial policies, when coupled with the discipline imposed by export markets, as the cases of soy and airplanes in Brazil show, can on occasion deliver the goods. Third, pessimism with respect to primary exports is unwarranted: the success of many vibrant and technologically dynamic agricultural exports suggests that, as Chapter 1 puts it, primary production can be “a springboard as well as a trap.” Guillermo Perry A M Former Chief Economist for Latin America at the World Bank and E former Finance Minister of Colombia. RICA Edited by 978-1-59782-141-4 Charles Sabel, Eduardo Fernández-Arias, Ricardo Hausmann, Andrés Rodríguez-Clare, and Ernesto Stein David Rockefeller Center for Latin American Studies Harvard University Distributed by DRCLAS Harvard University Press HARVARD EXPORTON PI EERS IN LATIN AMERICA Charles Sabel Eduardo Fernández-Arias Ricardo Hausmann Andrés Rodríguez-Clare Ernesto Stein Editors Inter-American Development Bank David Rockefeller Center for Latin American Studies Harvard University © Inter-American Development Bank, 2012. All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by information storage or retrieval system, without permission from the IDB. Co-published by David Rockefeller Center for Latin American Studies Harvard University 1730 Cambridge Street Cambridge, MA 02138 To order this book, please visit http://www.hup.harvard.edu/ Produced by the Research Department The views and opinions expressed in this publication are those of the authors and do not necessarily reflect the official position of the Inter-American Development Bank. Cataloging-in-Publication data provided by the Inter-American Development Bank Felipe Herrera Library Export pioneers in Latin America / Charles Sabel, Eduardo Fernández-Arias, Ricardo Hausmann, Andrés Rodríguez-Clare, Ernesto Stein, editors. p. cm. Includes bibliographical references. ISBN: 978-1-59782-141-4 1. Export trading companies—Latin America. 2. Exports—Latin America. 3. Foreign trade promotion—Latin America. I. Sabel, Charles F. II. Fernández-Arias, Eduardo. III. Hausmann, Ricardo. IV. Rodríguez-Clare, Andrés. V. Stein, Ernesto. VI. Inter- American Development Bank. Research Dept. HF1416.6.L29 E97 2012 To order this book from the IDB, please contact: Pórtico Bookstore 1350 New York Ave., N.W. Washington, D.C. 20005 Tel.: (202) 312-4186 E-mail: [email protected] Books can also be ordered through Amazon.com. CONTENTS Acknowledgments ..............................................................................................................vii Preface .......................................................................................................................................ix Chapter 1. Self-Discovery as a Coordination Problem ........................................1 Charles Sabel Chapter 2. The Emergence of Blueberry Exports in Argentina ................... 47 Gabriel Sánchez, Inés Butler, Ricardo Rozemberg, and Hernán Ruffo Chapter 3. The Emergence of Fresh Cut-Flower Exports in Colombia ..... 69 María Angélica Arbeláez, Marcela Meléndez, and Nicolás León Chapter 4. The Rise and Fall of Furniture Exports in São Bento do Sul, Brazil .........................................................................101 Angela da Rocha, Beatriz Kury, and Joana Monteiro Chapter 5. The Emergence and Consolidation of the Chilean Wine Industry .......................................................................................................... 119 Manuel Agosin and Claudio Bravo-Ortega Chapter 6. Market Failures and Free Trade: Hass Avocados in Mexico ....147 Edgar Aragón Chapter 7. Soybeans in the Savannahs of Brazil ...............................................177 Joana Monteiro, Angela da Rocha, Beatriz Kury, and Alexandre Darzé iv CONTENTS Chapter 8. Pork in Brazil ................................................................................................195 Regis Bonelli and Armando Castelar Pinheiro Chapter 9. The Aircraft Industry in Brazil (Embraer) ...................................... 217 Armando Castelar Pinheiro and Regis Bonelli Chapter 10. Software Discovery in Uruguay: Public-Private Solutions to Coordination Failures ................................................239 Michele Snoeck and Lucía Pittaluga Chapter 11. Animal Vaccines in Uruguay: A Truncated Discovery Process ..........................................................................................................271 Lucía Pittaluga and Michele Snoeck Chapter 12. TV Formats in Argentina .....................................................................295 Alejandro Artopoulos, Daniel Friel, and Juan Carlos Hallak Contributors ........................................................................................................................ 313 Boxes 6.1 Operation of a JLSV (Local Plant Health Board) ...........................................166 Figures 2.1 Hectares of Blueberries Planted, Argentina, 1996–2006 ............................ 52 2.2 Blueberry Exports and FOB Prices, Argentina, 1993–2008 ......................... 58 2.3 Raspberry Exports, Argentina, 1993–2008 ....................................................... 63 3.1 Flower Exports, Colombia, 1962–2009 .............................................................. 70 3.2 Ecuadorian Flower Exports, 1963–2008 ............................................................96 4.1 The Diffusion Process of Exporting in the São Bento do Sul Furniture Cluster .........................................................................................111 4.2 Evolution of the Exchange Rate, December 2004–June 2010................. 113 5.1 Wine Exports in Chile, 1990–2009 ..................................................................... 137 5.2 Volume of Wine Exports by Major Category, Chile, 1990–2009 ............. 137 5.3 Prices for Chilean Wines in 2005 U.S. Dollars, 1990–2005 ........................138 5.4 Chilean and Argentine Wine Exports, 1990–2009.......................................140 5.5 Wine Prices, Chile and Argentina, 1990–2009 ..............................................140 6.1 Value Added at Each Stage of Production and Export of Mexican Avocados .................................................................................................................... 151 6.2 Vega’s Purépecha Group, 1971–2006 ...............................................................152 CONTENTS v 6.3 Cooperative Socopaum and Its Imitators, 1980–2006 ...............................154 7.1 Exports of Soybean Products, Brazil, 1989–2009.........................................178 7.2 Geographical Distribution of Soybean Production in Brazil, 1960–2006 .................................................................................................................180 7.3 Evolution of Soybean Production in Brazil by State of the Federation ..........................................................................................................184 10.1 Uruguay’s Software Exports and Total Exports, 1998–2008 ....................240 10.2 The GeneXus Community ....................................................................................245
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