The Economic Theory of Special Jurisdictions and the Possibilities of the Lithium Valley
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Keywords
Special Economic Zones,, Lithium Valley, Special Jurisdictions, entrepreneurship
Abstract
Abstract: This article analyzes a theoretical case for cost-benefit analysis of a local elite accepting the implementation of a special jurisdiction (such as a Special Economic Zone or a Charter City), in which the choice is divided between benefiting from economic prosperity (through revenue) or rent-seeking. In the second part of the text, a brief economic diagnosis of entrepreneurship and employment is made for the Lithium Valley, a region located in the north of the state of Minas Gerais, to support a discussion based on evidence about the possible creation of a special jurisdiction in the region.
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