Texto para Discussão, Instituto de Pesquisa Econômica Aplicada (IPEA) 1775
The impacts of the exploration and production of large oil and gas reserves in a national economy are controversial. Several countries have shown a lack of capacity to develop based on these resources, while others achieve success. One important part of this equation are the local content rules adopted, that may force the oil companies into buying locally-produced supplies, which may influence the results attained either positively or negatively. The present work analyses the Brazilian case based on the international experience and concludes that, despite attaining a certain degree of success, the Brazilian local content policy should be enhanced as a way to minimize the risks of contracting the Dutch Disease by i) strengthening the controlling and transparency responsibilities of the local content coordination at ANP; ii) acknowledging the consequences of the oil industry to the national economy; and iii) considering the capability and specialization potential of the national industry.
Brazil mineral resources petroleum economic development local content