The Intra-industrial Relation between Argentina and Brazil

Universidad Nacional de La Matanza - Departamento de Ciencias Económicas

August 20, 2012 | 3 ′ 58 ′′


The Intra-industrial Relation between Argentina and Brazil


At national level, the growth of industrial commerce influences the interaction with the neighboring country. That is why a research team analyzes this relation and investigates a possible replacement of the traditional international market of agro-nutritional products. Through the study it will be possible to determine in what way the national industrial development is promoted and how it can be applied to other areas of the economy.

Through the creation of the South Common Market (MERCOSUR) as a commercial entity of Latin America an important growth was registered in the bonds and the productive barriers between the nations which form it were erased. But, particularly the relation between Argentina and Brazil was reinforced as the greatest partners, thanks to the commercial agreement and the macroeconomic stabilization which ruled at the beginning of the last decade.

In order to analyze the comparative advantages and the impact of the intra-industrial exchange between these two countries, a group of teachers and graduates from the Department of Economic Sciences faces a research which has as an axis the activities carried out by automotive and nutritional industries.

The project intends to open from the traditional international market of agro-nutritional products to focus industrialization and encourage the productive sector. The main objective is to determine how the industrial development in our country is promoted and in what way it can be applied to other areas of economy.

Although the research is currently in an analysis and data production stage, the final objective is to set a statistic matrix which helps to determine an economic data analysis measurement model. In this way, we will be able to conclude whether commerce grew regarding industrial internal development.

Internal development

The importance of the commerce of products of the same sector lies in their direct relation with industrial growth. That is why the project was focused in Brazil, one of the main clients of Argentina in the automotive market, especially of autoparts, and in the nutritional market, mainly of sweets.

Darío Pereyra, director of the Project said to Argentina Investiga that “the research can be applied to diverse sectors of the economy because intra-industrial commerce occurs everywhere”. “These two fields are the most representative at commercial level and they have more incidence in the GDP in Argentina”, said Pereyra. For this reason, he says “the theoretical concept that the project can be put into practice in other industries, such as, for example, furniture, shoes, food or chemicals”.

On her part, Ana Escobedo, member of the research team, stated that “the possibility that we can include other products which extend the range of goods that society receives at competitive prices is an advantage for Argentina”.

According to the data gathered, our country could supply a wider international demand. But, as we don’t have capital goods which permit the production of more units with a better quality, it cannot be realized. “In these ten years, we advanced, because we developed the capacity installed to the maximum. But we should have to look for the opportunity to have investments which might boost companies”, considered Escobedo.

Changes on the way

As we focused the study in the last decade, the varied changes make the research a difficult task. “We have to measure values of the 1 peso, 1 dollar era, as well as current values”, justified Pereyra and added that “inflation influences export costs. That is why we have to take into account the evolution of the kind of exchange and the international price after the crisis to determine how we are today”.

Guillermo Spina
gspina@unlam.edu.ar
Agustina Seyler y Estefanía Shilton
Área de Prensa y Difusión


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