Fiscal Benefits of Industrial Icms and New Economic Geography: A Study About Economic Growth of Brazilian Cities in Different Brazilian States’ Boreders From 2003 to 2012

Abstract

The Brazilian territory is composed of regional economic concentration, accentuated by climatic, demographic differences, mode of production, costs and utilization of tax benefits. Thus, an objective analysis understands the presence of ICMS (manufacturing industry) tax benefits that affect GDP growth rates based on the New Economic Geography, a theory in which
territorial factors are tools for promoting economic growth. A sample of 1,159 municipalities located between the states of the country. A dynamic panel modeling, coupled with the theoretical framework, shows that the tax benefits analyzed do not influence real GDP growth rates (2003 to 2012). A dependent variable is affected by regional factors such as employment relationships, number of items, industrial additional value, transportation cost, and demographic density.