ABSTRACT
The action of Superintendency of Development of the Northeast (SUDENE) was mainly inspired by the report which originated it. This report identified some important bottlenecks to the development of the region, among them the limits that agriculture put on development and the "triangular" commercial relations that this region developed with the Centre-South of the country. SUDENE presented a wide range of actions. But the element that gained most attention was the tax credit scheme known as article 34/18 as a reference to the articles of the Law which established this mechanism". The tax incentive mechanism was established by article 34 of Law No. 3995 of 1961, which approved the first "Plano Diretor" of SUDENE. The relevance of analysing the propensity of the new industry in the Northeast to import both capital goods and inputs is due to the multipliers which this industry can present and the degree of linkages that it can generate.
