1.

Record Nr.

UNINA9910812317903321

Autore

Klemm Alexander

Titolo

Empirical evidence on the effects of tax incentives / / Alexander Klemm and Stevan Van Parys

Pubbl/distr/stampa

[Washington, D.C.], : International Monetary Fund, 2009

ISBN

1-4623-1843-6

1-4519-9937-2

1-4518-7283-6

9786612843501

1-282-84350-8

Edizione

[1st ed.]

Descrizione fisica

1 online resource (27 p.)

Collana

IMF working paper ; ; WP/09/136

Altri autori (Persone)

ParysStefan van

Disciplina

336.243160941

Soggetti

Tax incentives

Tax credits

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

Description based upon print version of record.

Nota di bibliografia

Includes bibliographical references.

Nota di contenuto

Contents; I. Introduction; II. Data; Tables; 1. Tax Variables; 2. Descriptive Statistics; III. Empirical Evidence on Tax Competition; A. Methodology; Figures; 1. Average Tax Rates and Incentives Over the Years; B. Results; 3. The Choice Between Estimation Methods; 4. Fiscal Interactions for Different Tax Instruments; IV. Empirical Evidence on The Effect on Investment and Growth; A. Methodology; B. Results; 5. The Choice of Estimation Method; 6. The Effects of Tax Instruments on Investment and Growth; V. Conclusion; Appendixes; 1. Countries and Periods Covered in the Corporate Tax Dataset.

References

Sommario/riassunto

This paper considers two empirical questions about tax incentives: (1) are incentives used as tools of tax competition and (2) how effective are incentives in attracting investment? To answer these, we prepared a new dataset of tax incentives in over 40 Latin American, Caribbean and African countries for the period 1985–2004. Using spatial econometrics techniques for panel data to answer the first question, we find evidence for strategic interaction in tax holidays, in addition to the well-known competition over the corporate income tax rate. We find no evidence,



however, for competition over investment allowances and tax credits. Using dynamic panel data econometrics to answer the second question, we find evidence that lower corporate income tax rates and longer tax holidays are effective in attracting FDI, but not in boosting gross private fixed capital formation or growth.