05561oam 22013334 450 991096180470332120250426110446.0978661284350197814623184381462318436978145199937214519993729781451872835145187283697812828435091282843508(CKB)3170000000055291(EBL)1608347(SSID)ssj0000940733(PQKBManifestationID)11519296(PQKBTitleCode)TC0000940733(PQKBWorkID)10955940(PQKB)11036487(OCoLC)586061359(IMF)WPIEE2009136(MiAaPQ)EBC1608347(IMF)WPIEA2009136WPIEA2009136(EXLCZ)99317000000005529120020129d2009 uf 0engur|n|---|||||txtccrEmpirical Evidenceon the Effects of Tax Incentives /Alexander Klemm, Stefan Parys1st ed.Washington, D.C. :International Monetary Fund,2009.1 online resource (27 p.)IMF Working PapersDescription based upon print version of record.9781451917123 1451917120 Includes bibliographical references.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.ReferencesThis 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.IMF Working Papers; Working Paper ;No. 2009/136Tax incentivesTax creditsBalance of paymentsimfBusiness Taxes and SubsidiesimfCorporate & business taximfCorporate income taximfCorporate TaxationimfCorporationsimfEconometric analysisimfEconometric modelsimfEconometrics & economic statisticsimfEconometricsimfEstimation techniquesimfEstimationimfExports and ImportsimfFinanceimfForeign direct investmentimfInternational Fiscal IssuesimfInternational InvestmentimfInternational Public GoodsimfInvestments, ForeignimfLong-term Capital MovementsimfPublic finance & taxationimfTax holidaysimfTax incentivesimfTaxationimfTaxation, Subsidies, and Revenue: GeneralimfTaxesimfUnited StatesimfTax incentives.Tax credits.Balance of paymentsBusiness Taxes and SubsidiesCorporate & business taxCorporate income taxCorporate TaxationCorporationsEconometric analysisEconometric modelsEconometrics & economic statisticsEconometricsEstimation techniquesEstimationExports and ImportsFinanceForeign direct investmentInternational Fiscal IssuesInternational InvestmentInternational Public GoodsInvestments, ForeignLong-term Capital MovementsPublic finance & taxationTax holidaysTax incentivesTaxationTaxation, Subsidies, and Revenue: GeneralTaxes336.243160941Klemm Alexander1815705Parys Stefan1815912International Monetary Fund.DcWaIMFBOOK9910961804703321Empirical Evidenceon the Effects of Tax Incentives4371533UNINA