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Do tax incentives matter for investment? A literature review

Show simple item record Akanbi, O.A. Munongo, Simon Robinson, Zurika 2019-09-19T12:10:16Z 2019-09-19T12:10:16Z 2017
dc.identifier.citation Akanbi, O.A., Munongo, S. and Robinson, Z. 2017. Do tax incentives matter for investment? A literature review. Business and Economic Horizons, 13 (2): 152-168. en
dc.identifier.issn 1804-5006
dc.description.abstract The effectiveness of tax incentives in attracting FDI remains one of the unsettled concepts in public finance. The importance of tax incentives in attraction of internationally mobile capital differs with the jurisdiction of the study and the methodology used in drawing conclusions. This study in reviewing both theoretical and empirical literature seeks to establish the merits and demerits of tax incentives. This is because though they receive a lot of criticism tax incentives continue to be used in most economies. Most of the empirical studies that this study explored concluded that though tax incentives might be important in attracting FDI they are more effective when combined with other non-tax factors. Macroeconomic conditions, infrastructure and strong institutions were found to be important non-tax factors that improve the attractiveness of an economy to FDI. The major weaknesses of using taxes in attracting FDI were discussed using the tax competition and tax harmonisation framework. Here it was noted that the use of tax incentives to attract FDI might improve the welfare of individuals in the jurisdiction that apply the incentives, but have e en
dc.language.iso en en
dc.publisher Business and Economic Horizons en
dc.subject Tax incentives, public finance, foreign direct investment en
dc.title Do tax incentives matter for investment? A literature review en
dc.type Article en
dc.description.department Economics en

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