This paper analyzes the role of Tax Incentives in promoting investment, their effectiveness and their revenue and other costs and political economy. The paper consolidates econometric work on the topic done by the authors covering the Caribbean, Francophone Africa and India; surveys of Investors...

In this paper we first analyze theoretically how the investment climate affects the impact of the corporate tax rate on investment. We do so in a model where the tax revenues are used to improve the investment climate. We find that if the investment climate is very effective at enhancing the...

Many countries have introduced patent box regimes in recent years, offering a reduced tax rate to businesses for their IP-related income. Patent boxes are supposed to increase innovative activity, but they are also suspected to aim at attracting inward profit shifting from multinational...

Most governments of the Central and East European countries adopted in 1990s tax measures for a support of foreign direct investments. Such measures usually include 10-year tax holidays and exemption from import duties. They are mostly accompanied by grants for building an infrastructure and...

This paper studies the impact of special interest lobbying on competition between two countries for a multinational in a common agency framework. We examine the following questions. On the positive side, is special interest lobbying a determinant of competition for FDI? If so, how does this work...

Tax incentives offered to attract firms engaged in foreign direct investment are often tied to performance requirements such as domestic content restrictions. The tax competition literature has repeatedly shown that competition between municipalities for mobile firms tends to drive taxes to low...

Most governments of the Central and East European countries adopted tax measures in the 1990s to support foreign direct investments. Such measures usually include 10-year tax holidays and exemption from import duties. They are mostly accompanied by grants for building infrastructure and creation...

Recent facts on the importance of corporate losses motivate more careful study of the impact of tax incentives for investment on firms that lose money. I model firm investment decisions in a setting featuring financing constraints and carrybacks and carryforwards of operating losses. I estimate...

In recent years the Chinese economy has moved away from a carbon intensive economy towards an economy that relies increasingly on renewable energy. While this has been most evident with respect to hydro development, it can also been seen in increases in energy produced by solar and wind...