This study analyses the impacts on the economic growth of Cidade Gaúcha, in Paraná state, caused by the Usaciga plant installation. Regional development approaches, related to the role of technical interlinks and of the industry over the process of local growth, were used as theoretical reference. Primary data were given by the company and secondary data, gathered from IBGE (Brazilian Institute of Geography and Statistics) and from Ipardes (Parana Institute of Economic and Social Development). As a result, the Usaciga generates 2.195 direct jobs currently. The company and, as a consequence, the income growth in the city, has stimulated activities that supply the local demand. Therefore, Cidade Gaúcha showed a population growth (urban and total) higher than the one registered in the Northwestern region of Paraná from 1980 to 2000. At the same time, the loss in rural population was less expressive in Cidade Gaúcha. On the other hand, the regional focus only on the sugarcane agro industry concerns. Current problems caused by the regional specialization in coffee production, which happened in the past, confirm the mistake in this kind of strategy.
sugarcane agro industry; local economic growth; industrial economics; urban economics
