TAX SUBSIDY POLICIES AND INDUSTRIAL DYNAMISM IN RIO DE JANEIRO STATE

Abstract

In the last decades of the 20th century, the word ''competitiveness'' has been widespread within political circles as neo-liberal ideas in favour of globalisation advance. Under the wings of economic globalization, the ideals that not only companies but also territories compete with each other are thrived. In Brazil, the disputes over attracting capital between states and municipalities have been taking on greater significance since the 1990s, against the background of further economic opening, a reduced role for the State, and high regional inequality. In this text, our aim is to analyse tax subsidy policies to promote industry in the State of Rio de Janeiro, and recent implications on the dynamics of industry. Methodological procedures included bibliographical survey and reading, secondary data collection (IBGE, SEFAZ, LOA, CONFAZ), systematisation and data analysis. The results obtained indicate a substantial increase of tax waivers in recent years, and the concentration of subsidies on well-established branches and in more dynamic regions - Metropolitan Area, Mid Paraíba Valley - in addition to low effectiveness in sustaining industrial GVA, in formal job creation in industry, and in ICMS collection in relation to other states and to the national scenario itself.