Fiscal incentives and firm performance: evidence from the Dominican Republic

Alessandra Amendola (), Marinella Boccia (), Gianluca Mele and Luca Sensini

No 8382, Policy Research Working Paper Series from The World Bank

Abstract: This paper evaluates the impact of fiscal incentives on firm performance in the Dominican Republic. In recent years, the Dominican government has approved several new corporate tax benefits. While the literature on value-added tax incentives is extensive, the impact of corporate tax incentives is less well studied and is the subject of an ongoing debate. Using firm-level panel data from 2006 to 2015, this analysis uses fixed- and random-effects models to examine the relationship between corporate tax incentives and selected firm-level performance indicators. The results reveal that corporate income tax exemptions positively impact the performance of individual firms in the Dominican Republic, but uneven tax treatment across firms distorts competition in the industrial sector, with negative effects on overall economic productivity.

Keywords: Tax Administration; Macro-Fiscal Policy; Tax Law; Economic Adjustment and Lending; Taxation&Subsidies; Tax Policy; International Trade and Trade Rules; Public Sector Economics; Public Financial Management; Public Finance Decentralization and Poverty Reduction (search for similar items in EconPapers)
Date: 2018-03-27
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://documents.worldbank.org/curated/en/491141522157296676/pdf/WPS8382.pdf (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:wbk:wbrwps:8382

Access Statistics for this paper

More papers in Policy Research Working Paper Series from The World Bank 1818 H Street, N.W., Washington, DC 20433. Contact information at EDIRC.
Bibliographic data for series maintained by Roula I. Yazigi ().