Fiscal Policies and Firms' Performance:A Propensity Score Matching Analysis inDominican Republic

Alessandra Amendola (), Marinella Boccia (), Gianluca Mele and Luca Sensini ()
Additional contact information
Marinella Boccia: CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy, Postal: via Giovanni Paolo II, 132, 84084 - Fisciano (SA), ITALY, https://docenti.unisa.it/029804/home
Gianluca Mele: CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy, Postal: via Giovanni Paolo II, 132, 84084 - Fisciano (SA), ITALY
Luca Sensini: CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy, Postal: via Giovanni Paolo II, 132, 84084 - Fisciano (SA),, ITALY, https://docenti.unisa.it/005734/home

No 159, CELPE Discussion Papers from CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy

Abstract: Like many other countries, the Dominican Republic (DR) has introduced various tax expenditures designed to advance strategic development objectives. Although the literature on value-added tax incentives is extensive, the impact of Corporate Tax Incentives is less explored and is the subject of an ongoing debate. This paper contributes to this debate evaluating the effect of CorporateIncome Tax (CIT) on firms' performance in Dominican Republic. Using firm-level data from 2006 to 2015, an analysis based on a propensity score matching is carried out in order to investigate the aforementioned relationship considering some opportunely selected financial indicators as a proxies of firm's performance. The results show that the exemption from the CIT positively impacts the firms' performance and provide further evidence that reducing the tax liabilities would alleviate market distortions and promote competitiveness based on fundamentals.

Keywords: Corporate Income Tax; Firm Performance; Propensity Score Matching; Balancing Test (search for similar items in EconPapers)
JEL-codes: C10 D22 G28 R11 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2019-12-13
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.celpe.unisa.it/uploads/rescue/784/1048/161_dp.pdf Full text (application/pdf)

Related works:
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:sal:celpdp:0159

Access Statistics for this paper

More papers in CELPE Discussion Papers from CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy via Giovanni Paolo II, 132, 84084 - Fisciano (SA), ITALY. Contact information at EDIRC.
Bibliographic data for series maintained by Roberto Dell'Anno ().