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Una evaluación económica a los incentivos fiscales a la inversión en Uruguay


  • Fedora Carbajal

    () (Cinve)

  • Paula Carrasco

    () (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

  • Paola Cazulo

    () (Cinve)

  • Cecilia Llambí

    () (Cinve)

  • Andrés Rius

    () (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)


Investment promotion through tax incentives has been a key component of the last two governments’ strategy to stimulate the accumulation of productive assets. A public policy mechanism such as the Investment Promotion Regime (IPR, established by Decree 455/007) inevitably raises questions about its effectiveness (i.e., the capacity to achieve its objectives), efficiency (i.e., capacity to achieve those objectives minimizing the waste of resources and generation of unnecessary distortions), and the unintended and undesirable outcomes. For this document, the effects of tax incentives on investment, employment and the productivity of labor are estimated. The method used is Matched Differences in Differences, on the panel of firms affected by the main corporate income tax (IRAE), between 2005 and 2011. The evidence shows that the IPR had significant positive effect on investment and employment. The effect on investment increases until the third year and then declines. The effect on employment is increasing and persists over the first five years. No positive effects on productivity were found.

Suggested Citation

  • Fedora Carbajal & Paula Carrasco & Paola Cazulo & Cecilia Llambí & Andrés Rius, 2014. "Una evaluación económica a los incentivos fiscales a la inversión en Uruguay," Documentos de Trabajo (working papers) 14-20, Instituto de Economía - IECON.
  • Handle: RePEc:ulr:wpaper:dt-20-14

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    Cited by:

    1. Amarante, Verónica & Gómez, Marcela, 2016. "El proceso de formalización en el mercado laboral uruguayo," Estudios y Perspectivas – Oficina de la CEPAL en Montevideo 20, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    2. repec:idb:idbbks:6820 is not listed on IDEAS
    3. Verónica Amarante & Rodrigo Arim & Mijail Yapor, 2016. "Decomposing inequality changes in Uruguay: the role of formalization in the labor market," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-20, December.
    4. Osmel Manzano & Sebastián Auguste & Laura Alfaro & Daniel Artana & Adolfo Taylhardat & Mario Cuevas & Luis Porto, 2015. "Partners or Creditors? Attracting Foreign Investment and Productive Development to Central America and Dominican Republic," IDB Publications (Books), Inter-American Development Bank, number 88273 edited by Sebastián Auguste & Mario Cuevas & Osmel Manzano, February.

    More about this item


    Investment; economic evaluation; tax incentives; Uruguay;

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm

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