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Cross-country Econometric Study on the Impact of Fiscal Incentives on FDI

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  • Ma. Laarni D. Revilla

Abstract

The increasing level of competition for foreign direct investment (FDI) in the ‘90s triggered many countries to offer various fiscal incentives. Specifically, many Asian countries persistently keep their tax rates competitive. To empirically investigate the relationship between the two variables, this paper examines the impact of fiscal incentives on FDI using panel data from 1996 to 2012 for 5 ASEAN countries. The analysis utilized 5 panel data regression models, of which 2 are fixed-effects models and the remaining 3 are random effects models. {DISCUSSION PAPER SERIES NO. 2016-17].

Suggested Citation

  • Ma. Laarni D. Revilla, 2016. "Cross-country Econometric Study on the Impact of Fiscal Incentives on FDI," Working Papers id:11472, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:11472
    Note: Institutional Papers
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    References listed on IDEAS

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    6. Blomström, Magnus & Kokko, Ari, 2003. "The Economics of Foreign Direct Investment Incentives," EIJS Working Paper Series 168, Stockholm School of Economics, The European Institute of Japanese Studies.
    7. Renato E. Reside Jr., 2006. "Towards Rational Fiscal Incentives (Good Investments or Wasted Gifts?)," UP School of Economics Discussion Papers 200601, University of the Philippines School of Economics.
    8. Emmanuel Cleeve, 2008. "How effective are fiscal incentives to attract FDI to Sub-Saharan Africa?," Journal of Developing Areas, Tennessee State University, College of Business, vol. 42(1), pages 135-153, September.
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    10. Medalla, Erlinda M. Author_Email:, 2002. "Fiscal Incentives Revisited," Philippine Journal of Development, Philippine Institute for Development Studies.
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    15. Morrisset, Jacques & Pirnia, Neda, 2000. "How tax policy and incentives affect foreign direct investment - a review," Policy Research Working Paper Series 2509, The World Bank.
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    Cited by:

    1. Beata SLUSARCZYK, 2018. "Tax Incentives As A Main Factor To Attract Foreign Direct Investments In Poland," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2018(30), pages 67-81, June.
    2. Rana, Anber & Sadiq, Rehan & Alam, M. Shahria & Karunathilake, Hirushie & Hewage, Kasun, 2021. "Evaluation of financial incentives for green buildings in Canadian landscape," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).

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