Relations between the Change of the Institutional Environment and the Business Environment

Abstract

This paper aims to study the business environment of Paragominas, a municipality in the state of Pará that between 2007 and 2008 suffered government officials, such as the inclusion in the List of Priority Municipalities (LPM) and Operation Arco de Fogo (OAF); in addition to the Paragominas Green Municipality Project, these actions acted to combat deforestation and offer sustainable alternatives to the region's economy; as well as verifying whether the usual institutionalities in the municipality have created an institutional environment that promotes sustainable development. The study was developed from a quali-quantitative analysis. Where a survey of bibliographic material in articles, books and magazines was carried out, showing the transformations that took place in Paragominas, in the first two decades of the 21st century, taking into account the social, environmental and institutional processes experienced by the municipality; adding an analysis of statistical data on municipal agricultural production; restrictions and the labor market; Firjan Development Index; and deforestation, through a Mann-Whitney U Test. The results show that state intervention in combating deforestation in the municipality was not efficient, since the rate of deforestation remains positive, however, which refers to agricultural activities, over the past few years, it has been restructured with the decrease in cattle raising and strengthening of grain activities, such as soy and corn.