Latin American Business: Equity Distortion in Regional Resource Allocation in Brazil

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Examine the costs and benefits of fiscal "wars" between Brazilian statesLatin American Business examines Brazil's use of fiscal incentives to attract investors to help remedy disparities in the country's regional distribution of income. Since the 1990s, individual Brazilian states have taken the initiative in trying to lure domestic and foreign firms to locate within their borders, targeting the automotive industry, textiles, and shoe production. But their efforts have led to mixed results and questions about whether these ...

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