Tax Rate Cut and Firm Investment: Evidence from Thailand

Athiphat Muthitacharoen

No 126, PIER Discussion Papers from Puey Ungphakorn Institute for Economic Research

Abstract: How do firms' investment respond to a large corporate tax rate cut in developing countries? This study uses a matched difference-in-difference approach to estimate the investment responses of Thailand's 2012–13 corporate income tax cut. It finds that the tax cut has significantly boosted investment. The findings also underline the heterogeneity of the investment responses between local and foreign firms as well as the potential roles of policy uncertainty and market competition on investment response.

Keywords: Investment; Taxation (search for similar items in EconPapers)
JEL-codes: G31 H25 H32 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2020-02
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.pier.or.th/files/dp/pier_dp_126.pdf (application/pdf)

Related works:
Journal Article: Tax rate cut and firm investment: evidence from Thailand (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pui:dpaper:126

Ordering information: This working paper can be ordered from
https://www.pier.or.th/en/dp/126/

Access Statistics for this paper

More papers in PIER Discussion Papers from Puey Ungphakorn Institute for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by ().