Download Now Free registration required
This 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, the author 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, the author finds evidence for strategic interaction in tax holidays, in addition to the well-known competition over the corporate income tax rate.
- Format: PDF
- Size: 676.4 KB