Publication:
Using Tax Incentives to Compete for Foreign Investment : Are They Worth the Costs?

dc.contributor.author Wells, Louis T., Jr.
dc.contributor.author Allen, Nancy J.
dc.contributor.author Morisset, Jacques
dc.contributor.author Pirnia, Neda
dc.date.accessioned 2013-06-17T19:46:07Z
dc.date.available 2013-06-17T19:46:07Z
dc.date.issued 2001
dc.description.abstract 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. en
dc.identifier http://documents.worldbank.org/curated/en/2001/01/1614958/using-tax-incentives-compete-foreign-investment-worth-costs
dc.identifier.isbn 0-8213-4992-9
dc.identifier.uri http://hdl.handle.net/10986/13979
dc.language English
dc.language.iso en_US
dc.publisher Washington, DC: World Bank and the International Finance Corporation
dc.relation.ispartofseries FIAS Occasional Paper;No. 15
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo
dc.subject AGENCY PROBLEMS
dc.subject BALANCE OF PAYMENTS
dc.subject COLLECTIVE ACTION
dc.subject CONSUMERS
dc.subject CORPORATE INCOME TAX
dc.subject CORPORATE INCOME TAXES
dc.subject CREDIT SYSTEMS
dc.subject DISCOUNT RATE
dc.subject DIVIDENDS
dc.subject DOMESTIC FIRMS
dc.subject DOMESTIC INVESTORS
dc.subject DOMESTIC MARKET
dc.subject DOMESTIC MARKETS
dc.subject ECONOMETRIC ANALYSIS
dc.subject ECONOMIC DEVELOPMENT
dc.subject ECONOMISTS
dc.subject EMPIRICAL STUDIES
dc.subject EXPORT MARKETS
dc.subject FINANCIAL ASSISTANCE
dc.subject FINANCIAL SERVICES
dc.subject FISH
dc.subject FOREIGN COMPANIES
dc.subject FOREIGN DIRECT INVESTMENT
dc.subject FOREIGN FIRMS
dc.subject FOREIGN INVESTMENT
dc.subject FOREIGN INVESTORS
dc.subject FREE TRADE
dc.subject FREE TRADE AGREEMENT
dc.subject GROSS DOMESTIC PRODUCT
dc.subject GROWTH RATE
dc.subject GROWTH RATES
dc.subject HARMONIZATION
dc.subject IMPORTS
dc.subject INCOME
dc.subject INCOME TAX RATE
dc.subject INTERNATIONAL ECONOMICS
dc.subject INTERNATIONAL NORMS
dc.subject INVESTMENT FLOWS
dc.subject INVESTMENT INCENTIVES
dc.subject INVESTMENT INFLOWS
dc.subject LEGISLATION
dc.subject LICENSES
dc.subject MEMBER COUNTRIES
dc.subject MULTINATIONAL COMPANIES
dc.subject NATIONAL MARKET
dc.subject NEIGHBORING COUNTRIES
dc.subject NPV
dc.subject POTENTIAL INVESTORS
dc.subject PRESENT VALUE
dc.subject PRIVATE SECTOR
dc.subject PROVISIONS
dc.subject PUBLIC ENTERPRISES
dc.subject SAVINGS
dc.subject TAX
dc.subject TAX COMPETITION
dc.subject TAX CREDITS
dc.subject TAX INCENTIVES
dc.subject TAX RATES
dc.subject TAX REFORM
dc.subject TAX REVENUE
dc.subject TAX SYSTEM
dc.subject TAX SYSTEMS
dc.subject TAXATION
dc.subject TREASURY
dc.subject WAGES
dc.subject WORLD TRADE
dc.subject WORLD TRADE ORGANIZATION
dc.title Using Tax Incentives to Compete for Foreign Investment : Are They Worth the Costs? en
dspace.entity.type Publication
okr.doctype Publications & Research :: Publication
okr.doctype Publications & Research :: Publication
okr.docurl http://documents.worldbank.org/curated/en/2001/01/1614958/using-tax-incentives-compete-foreign-investment-worth-costs
okr.globalpractice Trade and Competitiveness
okr.identifier.doi 10.1596/0-8213-4992-9
okr.identifier.externaldocumentum 000094946_01102704133959
okr.identifier.internaldocumentum 1614958
okr.identifier.report 23032
okr.language.supported en
okr.pdfurl http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2001/11/10/000094946_01102704133959/Rendered/PDF/multi0page.pdf en
okr.region.administrative East Asia and Pacific
okr.region.administrative South Asia
okr.sector Public Administration, Law, and Justice
okr.theme Public sector governance :: Public expenditure, financial management and procurement
okr.topic International Economics and Trade :: Trade and Regional Integration
okr.topic Economic Theory and Research
okr.topic International Terrorism and Counterterrorism
okr.topic Environmental Economics and Policies
okr.topic Public Sector Economics and Finance
okr.unit FIAS Investment Generation-WB (CICIG)
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