Argentina, Brazil software policies have mixed record
Monday, February 27, 2017
Subject
Software and IT services policies.
Significance
Over the past 15 years, Argentina and Brazil have promoted their software and IT services (SIS) sectors. Strong sectoral growth has followed in both countries. However, this growth has depended largely upon low-value-added activities whose profitability has diminished amid economic recession. Sectors must move to higher-value-added activities if recent levels of growth are to be sustained.
Impacts
- Exchange rates and (in Argentina’s case) inflation may eat into export competitiveness.
- Both countries will need to add value to their SIS activities to maintain sectoral competitiveness.
- Increasing the complexity of SIS activities will be crucial to maximising their value.
Related articles
