The Efficiency of Fiscal Incentive in Municipalities With Lower Human Development Indices: The Case of Maranhão

Abstract

The objective of this article is to verify if the fiscal incentive had impact on the generation of employment in the municipalities that have the lowest IDH indices of the state of Maranhão. To this end, the study analyzes the development of employment generation during the granting of the fiscal incentive in Maranhão through the Meso-regions between 2010 and 2016. The specific objectives are: to identify the criteria established for granting the fiscal incentive; compare the number of jobs generated with the number of companies that benefited from the tax incentive; to verify the evolution of the jobs generated in each mesoregion and to know the economic activities that generate more jobs in the state. The problem of this research is: what are the impacts of fiscal incentives on employment generation in municipalities with the lowest IDH indices in Maranhão. It considers the methodology of this study, a field research, but of quantitative-descriptive character. Among the results, it was identified that the fiscal incentive had no impact on job creation in the Meso-regions that have the lowest IDH indices in the state of Maranhão between 2010 and 2016.