Dados is one of the most widely-read social sciences journals in Latin America. Created in 1966, it publishes innovative works, originating from academic research, by Brazilian and foreign authors. Edited by IESP-UERJ, it aims to reconcile scientific rigor and academic excellence with an emphasis on public debate based on the analysis of substantive issues of society and politics.
Dados vol. 43 n. 1 Rio de Janeiro 2000
Abstract
The article discusses some of the new issues raised by the recent surge of foreign direct investments in Brazil, especially in the auto industry. Known as the fiscal war, or bidding war, competition over these investments derives from a decrease in private investments (based on decisions made at multinational corporate headquarters) and from an increase in public spending. Stimulated by the central government, this competition exacerbates the federative conflict and hampers the generation of regional development projects aimed at decreasing inequalities. The most visible signs of this dispute are the wasting of public resources, predatory fragmentation, and uncertainty about return on investments. Based on the emergence of institutional innovations, reactions to these policies have nevertheless proven important to the future of municipalities and states.
Keywords: fiscal war, foreign direct investment in the auto industry, regional development
DOI: 10.1590/S0011-52582000000100001
The fiscal war and intermunicipal competition for new investments in the Brazilian auto industry
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