An Overview of Fortune 500 Companies in Brazil

 I like to completely track the political and economic vibes in India and Brazil to determine their "typological trajectories." Economic stakeholders are constantly flexing and reppin' complementary structures, you know? The major flex in an EM context is when an economy transitions from a state-centered model, you know? When compared to advanced economies, the "cap game" in emerging markets is extremely active. Just as advanced economies went through major transitions during the industrialization process, emerging economies are also experiencing massive transformation. 

 Proposed Theory: Typo Trajectory

Because today's EMs are attempting to "catch up" with advanced economies, governments are implementing developmental state structures to speed up the development process.50 State intervention is like hella in your face nowadays because globalisation brings both opportunities (global markets) and threats (global competition). Domestic politics heavily influences how countries deal with the challenges of competing in a globalized market (Gourevitch and Shinn 2007; Whitley 2005; Rajan and Zingales 2003; Doremus et al. 1998; Kogut 1993). The vibes of how developmental state policies affect microeconomic interaction are so important for understanding the formation of competitiveness, you know?

Chapter 3 discusses VoC in the context of institutional change, as well as the concept of a typological trajectory. I believe EMs exhibit typological characteristics as institutional complements emerge. When economies are just getting started, states completely step in and do things to allocate resources in the microeconomy, overcoming capital constraints and stimulating development, you know? The state's goal is to leverage and redistribute resources so that the economy can "catch up" and secure the bag. As markets evolve, developmental states cede control to privately organized complements. The transition from publicly organized to privately organized complements isn't always so simple, you know? And the concept of a typological trajectory will completely clarify the path of privately coordinated complement formation, fam.

The inability to account for institutional change processes is a major flaw in VoC theory, you know?

 

Crouch, for example, subtly exposes how this theory is flawed in terms of time and how things change within institutions. The tea is that VoC is hella static, fam, because it has been surveyed in an advanced economy context and within a specific timeframe, ya feel me? Institutional bargaining is extremely active in EMs because stakeholder relationships are not all fixed, and governments are far more vulnerable to pressures from global capital markets and globalization. However, evidence of change is completely obvious in advanced economies. Thelen, for example, demonstrates how institutions evolve through her work on the "trajectories of change" (2014).48 Thelen's research focuses on how institutions change in corporate governance (Gourevitch and Shinn 2005), as well as the capital allocation bargaining process. Focusing on Brazil and India, the data helps to drive hypotheses that can be tested, you know? Figure 2.3 shows India flexing hard, transitioning from a potentially chill market economy to one characterized by heavy informality. The vibes from the bottom right to the top left of the plots suggest that India's institutions do not distribute labor in a flexible manner, you know? OMG, with the state heavily involved in banking and a low per capita GDP, India's institutions appear to be immature and underdeveloped, ya know? In contrast, figure 2.2 shows the insanely low level of state intervention in Indian equity capital markets, which is an interesting contrast to the banking sector and further evidence of institutional incoherence. 

Figures 2.2 and 2.3, as well as figures 1.2 and 1.3, demonstrate the need to delve deeper into research on market typology variation. 

In the early 1990s, both countries were thriving with coordinated developmental states, but things got a little messy, particularly with fiscal deficits and other issues. So India and Brazil said, "Nah, we're outta here" and abandoned the whole "coordinated" thing. The findings suggest that India's institutions are transitioning from a developmental state to a liberal market economy. In contrast, Brazil's position remains relatively stable in the "middle" of both scatter plots. Brazilian capital and labor markets are extremely mixed, fam. Brazil may be hella informal, but it isn't on the same level as states with mad assertive centralized economic vibes emanating from a developmental or authoritarian state, do you feel? OMG, like, Brazil's mixed market status could be completely settled by institutions, you know?47 In a developmental context, Brazil is completely stuck at a "growth wall" (see Eichengreen et al 2013; Eichengreen et al 2011), which could demonstrate how people try to protect their own interests by keeping things the same, preventing any change from occurring. These ideas will be fully developed in Chapter 3, where the thesis theorizes on how to integrate developmental state concepts into a VoC framework, ya know?