Publication:
The Elusive Impact of Corporate Tax Incentives

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dc.contributor.authorCali, Massimiliano
dc.contributor.authorPresidente, Giorgio
dc.contributor.authorScot, Thiago
dc.date.accessioned2025-02-10T21:02:20Z
dc.date.available2025-02-10T21:02:20Z
dc.date.issued2025-02-10
dc.description.abstractDespite the large fiscal footprint of corporate tax incentives, limited causal evidence exists on their impact on economic outcomes. This paper helps fill this gap by exploiting the phasing out of a large income tax exemption scheme for export- oriented firms in Tunisia. Using data on the universe of registered Tunisian firms, the analysis shows that the reform caused a decline in the entry of new firms in the sector previously benefiting from the incentives. However, the reduced entry did not translate into any effects on employment, revenue, or the wage bill, as the reform did not impact the activities of incumbent firms, which account for the bulk of economic activity in Tunisia. The findings are robust to addressing various threats to the empirical identification, and they confirm emerging evidence casting doubt on the importance of tax incentives to determine investments relative to other factors in an economy.en
dc.identifierhttp://documents.worldbank.org/curated/en/099322302102576687/IDU1f414293c1bd0914f6f19a0c1c38b15036c43
dc.identifier.doi10.1596/1813-9450-11061
dc.identifier.urihttps://hdl.handle.net/10986/42785
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Paper; 11061
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectTAX INCENTIVES
dc.subjectCORPORATE INCOME TAX
dc.subjectEXPORT-ORIENTED FIRMS
dc.subjectBUSINESS INVESTMENT
dc.titleThe Elusive Impact of Corporate Tax Incentivesen
dc.typeWorking Paper
dspace.entity.typePublication
okr.associatedcontenthttps://reproducibility.worldbank.org/index.php/catalog/230 Link to reproducibility package
okr.date.disclosure2025-02-10
okr.date.lastmodified2025-02-10T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099322302102576687/IDU1f414293c1bd0914f6f19a0c1c38b15036c43
okr.guid099322302102576687
okr.identifier.docmidIDU-f414293c-bd09-4f6f-9a0c-c38b15036c43
okr.identifier.doi10.1596/1813-9450-11061
okr.identifier.externaldocumentum34454723
okr.identifier.internaldocumentum34454723
okr.identifier.reportWPS11061
okr.import.id6542
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099322302102576687/pdf/IDU1f414293c1bd0914f6f19a0c1c38b15036c43.pdfen
okr.region.administrativeMiddle East and North Africa
okr.region.countryTunisia
okr.sectorFY17 - Central Government (Central Agencies)
okr.themeMacro-financial policies,Human Development and Gender,Data Development and Capacity Building,Economic Policy,Food Security,Fiscal Policy,Environment and Natural Resource Management,Public Sector Management,Monetary and Credit Policies,Fiscal sustainability,Climate change,Data production, accessibility and use,Tax policy,Nutrition and Food Security
okr.topicMacroeconomics and Economic Growth::Taxation & Subsidies
okr.topicMacroeconomics and Economic Growth::Investment and Investment Climate
okr.topicMacroeconomics and Economic Growth::Fiscal & Monetary Policy
okr.unitEFI-MNA-MTI-MacroFiscal (EMNMT)
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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