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An Assessment of South Africa's Investment Incentive Regime with a Focus on the Manufacturing Sector

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Author Info
Paul Barbour
Abstract

This paper investigates whether South Africa’s tax incentives have been effective in generating additional manufacturing investment (both local and foreign direct investment). South Africa’s investment incentive regime compares favourably with international best practice. However, the qualitative and quantitative evidence reviewed supports the hypothesis that the impact on manufacturing investment has been negligible. The paper concludes with some recommendations for the way forward, notably to rationalise the number of incentives and to move away from the use of discretionary allocation systems.

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File URL: http://www.odi.org.uk/esau/publications/working_papers/esau_wp14.pdf
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Publisher Info
Paper provided by Economics and Statistics Analysis Unit (ESAU), Overseas Development Institute in its series Working Papers with number 14.

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Length: 60 pages
Date of creation: Dec 2005
Date of revision:
Publication status: Published as ISBN 0 85003 7816
Handle: RePEc:odi:wpaper:14

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Related research
Keywords: South Africa; investment incentives; tax incentives; manufacturing; METR analysis;

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