Lei de Maquila: impactos no desenvolvimento econômico do Paraguai de 2003 a 2016.

Abstract

The Maquila Law, or Paraguay Law Nº. 1064 of 1997, promotes incentives to foreign investors, with the levying of only 1% of export tax, without any further taxes, even for the importation of inputs necessary for production. In addition, labor and energy costs are considered low relative to countries in the same region. Such Paraguayan incentives have attracted entrepreneurs from several countries, mainly Brazilians, who are investors in 80% of the maquila companies in Paraguay. This policy is based on the strategy of export promotion, which is made possible through direct foreign investment. In this context, the main objective of this study was to analyze the impact of the Maquila Law on the economic development of Paraguay between 2003 and 2016. Thus, it proposed to study and measure data related to the Paraguayan Maquila Law, the relationship between export and foreign direct investment in that country, after the implementation of this law, using the econometric method of Ordinary Least Squares. What was found was that the impact that the Maquila Law provided to the country during the period studied was not very relevant for the economy as a whole, but for the secondary sector it was an important activity for its growth and diversification.