Brazilian investment in Argentina: Competition and financing in the footwear sector

Abstract

During the last decade, Brazilian capital has unfolded a policy of internationalization on a regional scheme.  The Argentine economy, in the framework of the recovery of its economic activity, registers an important advance in Brazilian firms in many sectors.  Considering that these investments occupy an important space in the local production of sports footwear, seen from the denominated 'eclectic paradigm' of Dunning this article's studies the motives that motivate Brazilian firms to seek their installation in Argentina and the characteristics that this process has adopted.  The analysis brings together information obtained through interviews with six companies taken as case studies.  The results show that Brazilian firms as investors in Argentina do not enter into a scheme of regional complementarity, but rather respond to the logic of gaining market share. Their installation appears to have characteristics of permanence, an aspect closely related to the restrictions on imports imposed by Argentina.