The opening of the Brazilian economy and the state of its firms and industries

The analysis undertaken in this study is motivated by the new economic environment faced by Brazil's industry since the early 1990s. In addition to the set of price stabilization policies that the country had already been struggling with during the 1980s, major economic reforms towards a greater opening of the economy, its deregulation and the privatization of state enterprises, started to be implemented.The methodology of analysis applied is based on the estimation of ordered probit models using the responses of an industrial survey on competitiveness of 700 firms, as a practical way to obtain relevant information that could give important insights for future actions both at firm and government levels.The dimensions that we analyze are related to the determinants of the degree of competitiveness and international integration, to the current types of adjustment needed in this new environment, to the process of flow of new technologies, and to whether domestic technological capabilities are required in order for firms to survive with the opening of their domestic markets. We attempt to contribute to identifying the ideal timing and the set of incentives that best permits efficient adjustment of firms/industries to a more open and deregulated economy