Research on the Brazilian Economy
Experiments in Financial Democracy
Cambridge University Press, 2009
In this book I challenge the law and finance literature and the idea that legal institutions are what determines the financial development of a country. I show how the founders of firms can create company bylaws with corporate governance arrangements that protect shareholders against the abuses of managers or the founders themselves, even when the law does not include such protections explicitly. That is, the protections for investors included in the bylaws of early Brazilian corporations explain, to a large extent, Brazil’s success in financing its first wave of industrialization (1882-1950). In particular, early Brazilian corporations included investor protections such as maximum vote provisions, which capped the number of votes a single shareholder could exercise during a shareholder meeting. That is, the founders of a firm would impose restrictions on their power in order to attract investors to finance the expansion of their business. I argue that corporate insiders provided such protections in Brazil to match the kind of protections British corporations afforded to investors at the time. Furthermore, my statistical analysis of the shareholder lists of nearly 100 Brazilian companies revealed a significant correlation between having such corporate statutes protecting small shareholders and having less concentrated ownership and control.
( Harvard University Press, April 2014 )
with Sergio G. Lazzarini
Read the introduction of the book here ; Review in the Schumpeter column (The Economist), June 2014 ; Also, our working paper Leviathan in Business (summary of the intro and first chapters of the book) was featured on The Visible Hand Special Report , The Economist, January 2012.
Online debate on State Capitalism: Aldo Musacchio vs Ian Bremmer
Here is the summary of the book according to ChatGPT
"Reinventing State Capitalism" explores the evolution of state capitalism in the 21st century. The book focuses on the experiences of state-owned enterprises (SOEs) in emerging markets, specifically in China, Brazil, and Russia. Musacchio and Lazzarini argue that state capitalism has undergone a transformation in recent years, moving away from the traditional model of state control over industry and towards a more market-oriented approach.
The book uses case studies of SOEs in the energy, telecommunications, and transportation sectors to illustrate his points. He notes that these enterprises have become more competitive, efficient, and profitable under the new model of state capitalism. However, he also acknowledges that there are challenges to this approach, including the risk of corruption, the potential for political interference, and the need for regulatory frameworks that balance state ownership with market principles.
Throughout the book, the authors provide a nuanced analysis of state capitalism, drawing on a wide range of academic research and empirical evidence. He argues that state capitalism is not a monolithic concept, but rather a diverse set of practices that vary depending on the political and economic context. Musacchio and Lazzarini's book is an important contribution to the study of state capitalism, offering insights into how this economic model is evolving and what the implications are for emerging markets and the global economy.
Research on the Political Economy of Development in Brazil (including pandemics)
Research on Developmental Policies and State Intervention in Brazil
What Do State-Owned Development Banks Do? Evidence from BNDES, 2002-09. World Development 66 (February 2015) (with Sergio G. Lazzarini, Rodrigo Bandeira de Mello, and RosileneMarcon)
"Leviathan as a Minority Shareholder: Firm-level Implications of Equity Purchases by the State." Academy of Management Journal 56-6 (December 2013): 1775-1801. (With Carlos F. K. V. Inoue and Sergio G. Lazzarini.)
"In Strange Company: The Puzzle of Private Investment in State-Controlled Firms." Cornell International Law Journal 46-3 (2013). (With Mariana Parglendler and Sergio G. Lazzarini.)
The Role and Impact of Development Banks: A Review of their Founding, Focus and Influence, World Bank manuscript, November, 2016 (with Sergio Lazzarini, Pedro Makhoul, and Emily Simmons)
State-Owned Enterprises in Brazil: History and Lessons (OECD Working Paper,, 2014)
Research on Corporate Governance In Brazil
A History of Insider Capitalism in Brazil (early draft), prepared for the Conference on The History of Capitalism in Latin America, April 27-28, 2018, Brasenose College, Oxford, UK.
Laws versus Contracts: Legal Origins, Shareholder Protections, and Ownership Concentration in Brazil, 1890-1950, Business History Review 82-3 (Autumn 2008): 445-473
Drawing Links between Corporate Governance and Networks: Bankers in the Corporate Networks of Brazil, Mexico, and the United States circa 1910, Enterprises et Histoire 54-1 (2009): 16-36
Can Civil Law Countries Get Good Institutions? Lessons from the History of Creditor Rights and Bond Markets in Brazil, Journal of Economic History 68- 1 (March 2008): 80-108. *Winner of the Arthur H. Cole Prize for best paper in the Journal of Economic History, 2007-2008
Bankers, Industrialists, and Their Cliques: Elite Networks in Mexico and Brazil during Early Industrialization, Enterprise and Society 8 - 4 (December 2007): 842-880 (With Ian Read)
Research on Colonial Institutions and Long-Run Economic Development
A Reassessment of Industrialization in South America: Argentina, Brazil, Chile and Colombia, 1890-2010, in O'Rourke, K.H. and Williamson, J.G. eds., 2017. The Spread of Modern Industry to the Periphery Since 1871. Oxford University Press. Chapter 13. (This version is the NBER working paper 24345, February 2018).
Colonial Institutions, Trade Shocks, and the Diffusion of Elementary Education in Brazil, 1889-1930, Journal of Economic History September 2014 (with Andre C. Martinez Fritscher and Martina Viarengo)
Endowments, Fiscal Federalism, and the Cost of Capital for States: Evidence from Brazil, 1891-1930, Financial History Review 17-1 (April 2010) (with Andre C. Martinez Fritscher) *Winner of the Gerry Feldman Young Scholar Prize, European Association of Banking and Financial History, 2010-2011
Big BRICs, Weak Foundations: The Beginning of Public Elementary Education in Brazil, Russia, India, and China, Explorations in Economic History 49-2 (April 2012): 221-240 (with Latika Chaudhary, Steven Nafziger, and Se Yan)
Research on Pandemics and their Impact in Brazil
"Short‐and medium‐run health and literacy impacts of the 1918 Spanish Flu pandemic in Brazil." The Economic History Review 75, no. 4 (2022): 997-1025. (with Amanda Guimbeau and Nidhiya Menon). Previous version available as NBER Working Paper w26929
"Influenza pandemics throughout Brazilian history " História, Ciências, Saúde – Manguinhos, Rio de Janeiro, v.29, n.4, out.-dez. 2022, p.1013-1031 (with Ian Read) (pdf here)
Research on Immigration
“European Immigration and Agricultural Productivity in Sao Paulo, Brazil, 1898–1920” in Felipe Valencia Caicedo (ed.), Roots of Underdevelopment: A New Economic and Political History of Latin America and the Caribbean, New York: Palgrave McMillan, 2023. (with Andre Lanza and Manas Maniar).