Native Capital: Financial Institutions and Economic Development in São Paulo, Brazil, 1850-1920
This book studies the development of banks and stock and bond exchanges in São Paulo, Brazil, during an era of rapid economic diversification. It assesses the contribution of these financial institutions to that diversification, and argues that they played an important role in São Paulo's urbanization and industrialization by the start of the twentieth century. It finds that government regulatory policy was important in limiting and shaping the activities of these institutions, but that pro-development policies did not always have their intended effects. This is the first book on São Paulo's famous industrialization to identify the strong relationship between financial institutions and São Paulo's economic modernization at the turn of the century. It is unique in Brazilian economic history, but contributes to a body of literature on financial systems and economic change in other parts of the world.
Results 1-5 of 62
In the case of Bahia, for example, merchant credit, petitioned and lent through marriage and business ties, financed the operations of the great sugar mills as well as new activities such as tobacco farming, truck farming, ...
The cost of machinery, equipment, and expertise, and the length of time required to get an operation up, running, and profitable, meant that commercial credit was not a viable source of industrial start-up capital.
... the Parisian notaries provided a relatively impersonal market, in that the lenders and borrowers did not need to know one another, for example, their own personal connections to both parties were central to the market's operation ...
... tended to emphasize short-term credit to provide the liquidity firms needed for day-to-day operations.34 Britain had the luxury of industrializing first and therefore developing the required supporting institutions at its leisure.
... intermediaries from small, conservative, personal institutions into larger, more flexible, and formal institutions provided São Paulo with the liquidity and capital it needed to diversify its economy. Initially operating via highly.