THE EFFECTIVENESS OF THE TAX INCENTIVES ON FOREIGN DIRECT INVESTMENTS

Alina Cristina Nuta and Florian Nuta

Journal of Public Administration, Finance and Law, 2012, vol. 1, issue 1, 55-65

Abstract: The economic integration trend has freed the capital movement and many new locations became available for investment. That is why the policy makers had to think for new and more efficient ways to lure the capital owners. One of the most used and dynamic method is the fiscal policy. The fiscal incentives were in many cases the main reason for choosing a country and stay away from another. The main reason for this situation is that the fiscal policy is one of the most flexible public tools to manipulate the market and the decisions on it. Public administrations can encourage or block different kinds of investment decisions according to its policy and long term plans.

Keywords: Tax; incentives; FDI (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:aic:jopafl:y:2012:v:1:p:55-65

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