Clarifying the relationship between corporate tax minimization and the incentive to invest is particularly important because of the size of corporate tax minimization or avoidance and the recurrent use of tax incentives as attempts to spur business investment. In this paper, we empirically...

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...

We address the problem of optimal form and timing of FDI subsidy, and the impact of competition on these. We find that the optimal subsidy must include an element of discouragement against delaying the timing of the investment for the firm to prevent the firm from extracting rent from the host...

Methodologically, the recommended investment project (IP) selection system is distinguished from one in force by: new conception allowing for time factor; evaluating IP efficiency by eventual reproduction results, not by intermediate investment activity results (included is a generalized...

This paper provides a retrospective assessment of the effects of trade policies on South African manufacturing since the transition to democracy, examining the differences and commonalities in the views of economists in favour of and against an acceleration of trade liberalization. Data from the...

We assess the real effects of a recent opening of the energy sector in Mexico to private investment. We look at one particular channel, which operates through the change in the structure of electricity generation in favor of cheaper sources of energy, such as natural gas. We look at the...

This paper assesses the real effects of the energy reform in Mexico by looking at its impact on manufacturing output through changes in energy prices. Using sub-sector and state-level manufacturing output data, along with past variation in energy prices, we find electricity prices - relative to...

A consistent set of disaggregated industrial output data for four Eastern European countries is examined in order to determine the extent to which structural adjustment has taken place since the initiation of market-oriented reform. The latter created a massive relative price shock whose effects...

What are the prospects of Kenya's long-term economic growth and development? This paper provides an analytical description of the Kenyan economy by looking at Kenya Vision 2030 with a special focus on underlying structural dimensions. One of the important factors affecting Kenya's development...

I analyse the effect of Brexit vote on UK manufacturing divisions using a synthetic control methodology. My results show that in the three years following the Brexit referendum, the UK total manufacturing sector's employment decreased by an average of 1.7% per quarter. When investigating the...