Counterfactual analysis

a study from the Economic Sociology point of view

Abstract

This text aims to discuss the potential benefit of a notion familiar to several disciplines – counterfactual thinking – for research agendas in Economic Sociology. It offers a brief theoretical foundation of this line of reasoning, recovering its use in historical-comparative and experimental studies. The article includes a brief literature review that demonstrates that
counterfactuals are not usually discussed in Economic Sociology, its usage being low compared to related disciplines. To illustrate the prospect of counterfactuals in socio-economic research, even in case studies, this paper counterfactually revisits socio-economic research on the social determinants of Foreign Direct Investment (FDI). More specifically, it examines a case study that shows how Nissan's investment decision to build its first car factory in Brazil took place. Then, it argues, counterfactually, how this decision could have been different if other social, institutional and political arrangements were in place.n in case studies, this paper counterfactually revisits socio-economic research on the social