Fiscal Incentives and Firm Performance : Evidence from the Dominican Republic

Fiscal Incentives and Firm Performance : Evidence from the Dominican Republic

This paper evaluates the impact of fiscal incentives on firm performance in the Dominican Republic. In recent years, the Dominican government has approved several new corporate tax benefits. While the literature on value-added tax incentives is ext...

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Bibliographic Details
Main Authors: Amendola, Alessandra, Boccia, Marinella, Mele, Gianluca, Sensini, Luca
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2018
Subjects:
SUBSIDIES
TAX BREAKS
FISCAL INCENTIVES
FIRM PERFORMANCE
COMPETITION POLICY
TAX INCENTIVE
CORPORATE INCOME TAX
VAT
VALUE-ADDED TAX
ECONOMIC DISTORTION
TAX EXEMPTIONS
COMPETITION
Online Access:http://documents.worldbank.org/curated/en/491141522157296676/Fiscal-incentives-and-firm-performance-evidence-from-the-Dominican-Republic
http://hdl.handle.net/10986/29562
id okr-10986-29562
recordtype oai_dc
spelling okr-10986-295622021-06-08T14:42:45Z Fiscal Incentives and Firm Performance : Evidence from the Dominican Republic Amendola, Alessandra Boccia, Marinella Mele, Gianluca Sensini, Luca SUBSIDIES TAX BREAKS FISCAL INCENTIVES FIRM PERFORMANCE COMPETITION POLICY TAX INCENTIVE CORPORATE INCOME TAX VAT VALUE-ADDED TAX ECONOMIC DISTORTION TAX EXEMPTIONS COMPETITION This paper evaluates the impact of fiscal incentives on firm performance in the Dominican Republic. In recent years, the Dominican government has approved several new corporate tax benefits. While the literature on value-added tax incentives is extensive, the impact of corporate tax incentives is less well studied and is the subject of an ongoing debate. Using firm-level panel data from 2006 to 2015, this analysis uses fixed- and random-effects models to examine the relationship between corporate tax incentives and selected firm-level performance indicators. The results reveal that corporate income tax exemptions positively impact the performance of individual firms in the Dominican Republic, but uneven tax treatment across firms distorts competition in the industrial sector, with negative effects on overall economic productivity. 2018-03-30T19:09:08Z 2018-03-30T19:09:08Z 2018-03 Working Paper http://documents.worldbank.org/curated/en/491141522157296676/Fiscal-incentives-and-firm-performance-evidence-from-the-Dominican-Republic http://hdl.handle.net/10986/29562 English Policy Research Working Paper;No. 8382 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Dominican Republic
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic SUBSIDIES
TAX BREAKS
FISCAL INCENTIVES
FIRM PERFORMANCE
COMPETITION POLICY
TAX INCENTIVE
CORPORATE INCOME TAX
VAT
VALUE-ADDED TAX
ECONOMIC DISTORTION
TAX EXEMPTIONS
COMPETITION
spellingShingle SUBSIDIES
TAX BREAKS
FISCAL INCENTIVES
FIRM PERFORMANCE
COMPETITION POLICY
TAX INCENTIVE
CORPORATE INCOME TAX
VAT
VALUE-ADDED TAX
ECONOMIC DISTORTION
TAX EXEMPTIONS
COMPETITION
Amendola, Alessandra
Boccia, Marinella
Mele, Gianluca
Sensini, Luca
Fiscal Incentives and Firm Performance : Evidence from the Dominican Republic
geographic_facet Latin America & Caribbean
Dominican Republic
relation Policy Research Working Paper;No. 8382
description This paper evaluates the impact of fiscal incentives on firm performance in the Dominican Republic. In recent years, the Dominican government has approved several new corporate tax benefits. While the literature on value-added tax incentives is extensive, the impact of corporate tax incentives is less well studied and is the subject of an ongoing debate. Using firm-level panel data from 2006 to 2015, this analysis uses fixed- and random-effects models to examine the relationship between corporate tax incentives and selected firm-level performance indicators. The results reveal that corporate income tax exemptions positively impact the performance of individual firms in the Dominican Republic, but uneven tax treatment across firms distorts competition in the industrial sector, with negative effects on overall economic productivity.
format Working Paper
author Amendola, Alessandra
Boccia, Marinella
Mele, Gianluca
Sensini, Luca
author_facet Amendola, Alessandra
Boccia, Marinella
Mele, Gianluca
Sensini, Luca
author_sort Amendola, Alessandra
title Fiscal Incentives and Firm Performance : Evidence from the Dominican Republic
title_short Fiscal Incentives and Firm Performance : Evidence from the Dominican Republic
title_full Fiscal Incentives and Firm Performance : Evidence from the Dominican Republic
title_fullStr Fiscal Incentives and Firm Performance : Evidence from the Dominican Republic
title_full_unstemmed Fiscal Incentives and Firm Performance : Evidence from the Dominican Republic
title_sort fiscal incentives and firm performance : evidence from the dominican republic
publisher World Bank, Washington, DC
publishDate 2018
url http://documents.worldbank.org/curated/en/491141522157296676/Fiscal-incentives-and-firm-performance-evidence-from-the-Dominican-Republic
http://hdl.handle.net/10986/29562
_version_ 1764469723437727744

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