Effects of tax exemption on economic growth

Miranda, Marconi Silva; Ferreira, Marco Aurélio Marques; Abrantes, Luiz Antônio; Macedo, Suélem Viana

doi:10.15728/bbr.2021.19.2.4

Acessibilidade / Reportar erro

Brasil

BBR. Brazilian Business Review

Español English

Brasil

Español English

sumário « anterior atual seguinte »

Sumário

Article • BBR, Braz. Bus. Rev. 19 (2) • Mar-Apr 2022 • https://doi.org/10.15728/bbr.2021.19.2.4 copy

Effects of tax exemption on economic growth

Authorship SCIMAGO INSTITUTIONS RANKINGS

ABSTRACT

Faced with economic crisis and stagnation, the Brazilian government, in the fiscal realm, has been characterized by the adoption of exemption tax policies. In this scenario, the present study aimed to investigate the behavior of some dimensions of industrial activity, having as its central focus the effect that the Tax on Industrialized Products exemptions has on the economic growth of Brazilian municipalities. The empirical strategy employed used statistical models in panel data and quantile regression, taking the period between 2007 and 2017. The main results indicated that, even with the positive behavior of industrial activity, especially between 2009 and 2013, the exemptions did not contribute to the economic growth of Brazilian municipalities.

KEYWORDS:
Crisis; Municipalities; Exemptions; Growth

Variable	Description	Source	Literature
VABind	Industrial sector gross added value	IBGE	Suri et al. (2011Suri, T., Boozer, M. A., Ranis, G., & Stewart, F. (2011). Paths to success: The Relationship between human development and economic growth. World Development, 39(4), 506-522. https://doi.org/10.1016/j.worlddev.2010.08.020 https://doi.org/10.1016/j.worlddev.2010.... ); Todaro & Smith, (2012Todaro, M. P., & Smith, S. C. (2012). Economic Development (12th ed.). Londres: Pearson.)
License plates	Number of annual licensing of new cars for the entire country	FENABRAVE	Brue (2006Brue, S. L. (2006). História do Pensamento Econômico (6a ed.). São Paulo: Thomson Learning.)
Employment	The ratio between the annual number of admissions and formal layoffs per Brazilian municipality	CAGED	Todaro & Smith (2012Todaro, M. P., & Smith, S. C. (2012). Economic Development (12th ed.). Londres: Pearson.); Aglietta (1979Aglietta, M. (1979). A Theory of Capitalist Regulation: The US experience. London: Verso.)
Establishments	Number of establishments in the industrial sector per municipality for each studied year	CAGED	Brue (2006Brue, S. L. (2006). História do Pensamento Econômico (6a ed.). São Paulo: Thomson Learning.)
exIPIxFPM	IPI exemptions divided by the FPM	Lesgislation Portal and FINBRA	Musgrave (1959Musgrave, R. A. (1959). The Theory of Public Finance: A Study in Public Economy. New York: McGraw-Hill.)
IFGF	Firjan Tax Management Index for each Brazilian municipality	FIRJAN	Jorge & Martins (2013Jorge, C. T., & Martins, N. M. (2013). Política fiscal e a desaceleração da economia brasileira no governo Dilma (2010-2012). Instituto de Economia UFRG. Texto Para Discussão 013. Recuperado de https://www.ie.ufrj.br/images/IE/TDS/2013/TD_IE_013_2013.pdf https://www.ie.ufrj.br/images/IE/TDS/201... )
exIPI	Dummy indicating IPI exemption between 2009 and 2013	Legislation Portal	-

Year	VABind per capita		Employment		Establishments
Year	Mean	stand. dev.	Mean	stand. dev.	Mean	stand. dev.
2007	3,689.37	10,780.29	1.34	1.55	86.32	611.10
2008	3,762.80	10,94.36	1.27	1.75	89.48	627.58
2009	3,793.13	10,631.34	1.26	1.70	91.59	937.83
2010	3,939.69	11,466.56	1.35	1.91	94.13	651.13
2011	4,100.82	12,781.24	1.22	1.09	97.10	667.30
2012	4,217.85	13,773.48	1.18	1.10	99.83	683.23
2013	4,595.47	16,343.00	1.19	1.14	11.20	773.62
2014	5,650.85	40,045.21	1.14	1.05	120.04	780.94
2015	5,044.40	27,332.93	0.97	1.15	117.71	751.38
2016	4,914.89	21,527.92	1.02	1.18	110.92	709.57
2017	5,080.08	27,208.96	1.12	1.17	108.25	679.90

Variables	Model 1	Model 2	Model 3	Model 4
exIPI	- 526.17^*	- 769.94^*	- 783.38^*	- 896.93^*
exIPIxFPM	0.2659^*	0.4692^*	0.4819^*	0.5718^*
Employment		- 9.3097	- 4.3460	- 26.4228
Establishments			7.6850^*	8.4572^*
IFGF				1,117.7^**
Nº of observations	61,235	52,549	51,832	49,349
F test	0.0156^*	0.0148^*	0.0000^*	0.0000^*

Variables	Quantiles
Variables	0.25	0.50	0.75
exIPIxFPM	-0.0303^*	-0.0833^*	-0.3125^*
exIPIxFPM	(0.0058)	(0.0071)	(0.0298)
Employment	-25.5472^*	-56.9323^*	-97.4825^*
Employment	(1.0534)	(1.4489)	(10.8867)
Estabelishments	1.2314^*	3.9428^*	8.0102^*
Estabelishments	(0.1750)	(0.3069)	(0.6008)
IFGF	1,980.16^*	3,799.01^*	8,788.10^*
IFGF	(29.8138)	(57.0329)	(148.2966)
Wald Test: 0.0000^*; Nº of observations: 49,349

Fucape Business School Av. Fernando Ferrari, 1358, Boa Vista, 29075-505, Vitória, Espírito Santo, Brasil, (27) 4009-4423 - Vitória - ES - Brazil
E-mail: bbronline@bbronline.com.br

Acompanhe os números deste periódico no seu leitor de RSS

[1] marconismiranda@hotmail.com