The evolution of the Brazilian petrochemical industry and the tripartite company model

Abstract

The evolution of the Brazilian petrochemical industry is analysed based on the
economic development model set up in the second half of the fifties and on the political system
stablished in 1964. The State undefinition in the first period of this industry (48 – 64)
holds down the sector growth in adequate proportion to the economic model requiring a
great leap in the second period (64 – 80), possible by the “tripartite” enterprise (association
among the State, local capital and multinationals). When the conditions that support this enterprise
role are finished, it starts to fall down, and the local private entrepreneurs get more
dependent on their own capabilities to compete with the multinationals in a process that
seems to draw the characteristics of the third phase of the industry.

JEL Classification: L71; L32.