Using Tax Incentives to Compete for Foreign Investment : Are They Worth the Costs?
The book contains complementary essays on the use of tax incentives, to attract foreign direct investment (FDI). The first essay presents results of the authors' original research, and explores FDI, and issues of tax incentives, in the context...
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| Language: | English en_US |
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Washington, DC: World Bank and the International Finance Corporation
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2001/01/1614958/using-tax-incentives-compete-foreign-investment-worth-costs http://hdl.handle.net/10986/13979 |
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okr-10986-139792021-04-23T14:03:10Z Using Tax Incentives to Compete for Foreign Investment : Are They Worth the Costs? Wells, Louis T., Jr. Allen, Nancy J. Morisset, Jacques Pirnia, Neda AGENCY PROBLEMS BALANCE OF PAYMENTS COLLECTIVE ACTION CONSUMERS CORPORATE INCOME TAX CORPORATE INCOME TAXES CREDIT SYSTEMS DISCOUNT RATE DIVIDENDS DOMESTIC FIRMS DOMESTIC INVESTORS DOMESTIC MARKET DOMESTIC MARKETS ECONOMETRIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMISTS EMPIRICAL STUDIES EXPORT MARKETS FINANCIAL ASSISTANCE FINANCIAL SERVICES FISH FOREIGN COMPANIES FOREIGN DIRECT INVESTMENT FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN INVESTORS FREE TRADE FREE TRADE AGREEMENT GROSS DOMESTIC PRODUCT GROWTH RATE GROWTH RATES HARMONIZATION IMPORTS INCOME INCOME TAX RATE INTERNATIONAL ECONOMICS INTERNATIONAL NORMS INVESTMENT FLOWS INVESTMENT INCENTIVES INVESTMENT INFLOWS LEGISLATION LICENSES MEMBER COUNTRIES MULTINATIONAL COMPANIES NATIONAL MARKET NEIGHBORING COUNTRIES NPV POTENTIAL INVESTORS PRESENT VALUE PRIVATE SECTOR PROVISIONS PUBLIC ENTERPRISES SAVINGS TAX TAX COMPETITION TAX CREDITS TAX INCENTIVES TAX RATES TAX REFORM TAX REVENUE TAX SYSTEM TAX SYSTEMS TAXATION TREASURY WAGES WORLD TRADE WORLD TRADE ORGANIZATION The book contains complementary essays on the use of tax incentives, to attract foreign direct investment (FDI). The first essay presents results of the authors' original research, and explores FDI, and issues of tax incentives, in the context of Indonesia. Their results mostly support the arguments made against incentives, particularly they find little evidence that when Indonesia eliminated tax incentives, there was any decline in the rate of FDI into the country. Similarly, the second essay surveys the research of others on the same topic, and pertaining to the same issues discussed in the first essay. They show that results of other researchers, are generally consistent with the findings of the research in Indonesia, notably that tax incentives, neither affect significantly the amount of direct investment that takes place, nor usually determine the location to which investment is drawn. Nevertheless, recent evidence has shown that when factors such as political, and economic stability, infrastructure, and transport costs are more, or less equal between potential locations, taxes may exert a significant impact. This is evidenced by the growing tax competition in regional groupings (i.e., the European Union) or, at the sub-regional level within one country (i.e., the United States). Both essays provide a basis for much more sophisticated analysis by policymakers than previously, and, both are important because they question governments' institutional arrangements that create agency problems with respect to tax incentive policies. 2013-06-17T19:46:07Z 2013-06-17T19:46:07Z 2001 http://documents.worldbank.org/curated/en/2001/01/1614958/using-tax-incentives-compete-foreign-investment-worth-costs 0-8213-4992-9 http://hdl.handle.net/10986/13979 English en_US FIAS Occasional Paper;No. 15 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank and the International Finance Corporation Publications & Research :: Publication Publications & Research :: Publication East Asia and Pacific South Asia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
AGENCY PROBLEMS BALANCE OF PAYMENTS COLLECTIVE ACTION CONSUMERS CORPORATE INCOME TAX CORPORATE INCOME TAXES CREDIT SYSTEMS DISCOUNT RATE DIVIDENDS DOMESTIC FIRMS DOMESTIC INVESTORS DOMESTIC MARKET DOMESTIC MARKETS ECONOMETRIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMISTS EMPIRICAL STUDIES EXPORT MARKETS FINANCIAL ASSISTANCE FINANCIAL SERVICES FISH FOREIGN COMPANIES FOREIGN DIRECT INVESTMENT FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN INVESTORS FREE TRADE FREE TRADE AGREEMENT GROSS DOMESTIC PRODUCT GROWTH RATE GROWTH RATES HARMONIZATION IMPORTS INCOME INCOME TAX RATE INTERNATIONAL ECONOMICS INTERNATIONAL NORMS INVESTMENT FLOWS INVESTMENT INCENTIVES INVESTMENT INFLOWS LEGISLATION LICENSES MEMBER COUNTRIES MULTINATIONAL COMPANIES NATIONAL MARKET NEIGHBORING COUNTRIES NPV POTENTIAL INVESTORS PRESENT VALUE PRIVATE SECTOR PROVISIONS PUBLIC ENTERPRISES SAVINGS TAX TAX COMPETITION TAX CREDITS TAX INCENTIVES TAX RATES TAX REFORM TAX REVENUE TAX SYSTEM TAX SYSTEMS TAXATION TREASURY WAGES WORLD TRADE WORLD TRADE ORGANIZATION |
| spellingShingle |
AGENCY PROBLEMS BALANCE OF PAYMENTS COLLECTIVE ACTION CONSUMERS CORPORATE INCOME TAX CORPORATE INCOME TAXES CREDIT SYSTEMS DISCOUNT RATE DIVIDENDS DOMESTIC FIRMS DOMESTIC INVESTORS DOMESTIC MARKET DOMESTIC MARKETS ECONOMETRIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMISTS EMPIRICAL STUDIES EXPORT MARKETS FINANCIAL ASSISTANCE FINANCIAL SERVICES FISH FOREIGN COMPANIES FOREIGN DIRECT INVESTMENT FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN INVESTORS FREE TRADE FREE TRADE AGREEMENT GROSS DOMESTIC PRODUCT GROWTH RATE GROWTH RATES HARMONIZATION IMPORTS INCOME INCOME TAX RATE INTERNATIONAL ECONOMICS INTERNATIONAL NORMS INVESTMENT FLOWS INVESTMENT INCENTIVES INVESTMENT INFLOWS LEGISLATION LICENSES MEMBER COUNTRIES MULTINATIONAL COMPANIES NATIONAL MARKET NEIGHBORING COUNTRIES NPV POTENTIAL INVESTORS PRESENT VALUE PRIVATE SECTOR PROVISIONS PUBLIC ENTERPRISES SAVINGS TAX TAX COMPETITION TAX CREDITS TAX INCENTIVES TAX RATES TAX REFORM TAX REVENUE TAX SYSTEM TAX SYSTEMS TAXATION TREASURY WAGES WORLD TRADE WORLD TRADE ORGANIZATION Wells, Louis T., Jr. Allen, Nancy J. Morisset, Jacques Pirnia, Neda Using Tax Incentives to Compete for Foreign Investment : Are They Worth the Costs? |
| geographic_facet |
East Asia and Pacific South Asia |
| relation |
FIAS Occasional Paper;No. 15 |
| description |
The book contains complementary essays
on the use of tax incentives, to attract foreign direct
investment (FDI). The first essay presents results of the
authors' original research, and explores FDI, and
issues of tax incentives, in the context of Indonesia. Their
results mostly support the arguments made against
incentives, particularly they find little evidence that when
Indonesia eliminated tax incentives, there was any decline
in the rate of FDI into the country. Similarly, the second
essay surveys the research of others on the same topic, and
pertaining to the same issues discussed in the first essay.
They show that results of other researchers, are generally
consistent with the findings of the research in Indonesia,
notably that tax incentives, neither affect significantly
the amount of direct investment that takes place, nor
usually determine the location to which investment is drawn.
Nevertheless, recent evidence has shown that when factors
such as political, and economic stability, infrastructure,
and transport costs are more, or less equal between
potential locations, taxes may exert a significant impact.
This is evidenced by the growing tax competition in regional
groupings (i.e., the European Union) or, at the sub-regional
level within one country (i.e., the United States). Both
essays provide a basis for much more sophisticated analysis
by policymakers than previously, and, both are important
because they question governments' institutional
arrangements that create agency problems with respect to tax
incentive policies. |
| format |
Publications & Research :: Publication |
| author |
Wells, Louis T., Jr. Allen, Nancy J. Morisset, Jacques Pirnia, Neda |
| author_facet |
Wells, Louis T., Jr. Allen, Nancy J. Morisset, Jacques Pirnia, Neda |
| author_sort |
Wells, Louis T., Jr. |
| title |
Using Tax Incentives to Compete for Foreign Investment : Are They Worth the Costs? |
| title_short |
Using Tax Incentives to Compete for Foreign Investment : Are They Worth the Costs? |
| title_full |
Using Tax Incentives to Compete for Foreign Investment : Are They Worth the Costs? |
| title_fullStr |
Using Tax Incentives to Compete for Foreign Investment : Are They Worth the Costs? |
| title_full_unstemmed |
Using Tax Incentives to Compete for Foreign Investment : Are They Worth the Costs? |
| title_sort |
using tax incentives to compete for foreign investment : are they worth the costs? |
| publisher |
Washington, DC: World Bank and the International Finance Corporation |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2001/01/1614958/using-tax-incentives-compete-foreign-investment-worth-costs http://hdl.handle.net/10986/13979 |
| _version_ |
1764424963073245184 |