The Effectiveness of Tax Incentives: Attracting Foreign Investment to a Small Open Economy - Softcover

Liard-Muriente, Carlos

9783639097184: The Effectiveness of Tax Incentives: Attracting Foreign Investment to a Small Open Economy

Softcover

ISBN 10: 3639097181 ISBN 13: 9783639097184

Publisher: VDM Verlag Dr. M�ller, 2010

A controversial topic of research in the fields of regional economics and economic geography relates to the economic incentives local governments give to firms in an effort to diversify location of production (spatial concern), and create jobs (development concern). Although the literature about incentives is extensive, we still do not have a clear understanding about their effectiveness. The contribution of this work is the empirical analysis of the effectiveness of Puerto Rico's investment incentive program, a small open Caribbean economy. The evaluation of Puerto Rico's incentive program will shed light on policy issues that are relevant not only to Puerto Rico but also to the many countries that are trying to implement targeted development areas. Globalization creates new difficulties for national policy tools. If tax incentives are effective in affecting location decisions within a region, and in creating jobs, then countries could use this tool to channel the flow of foreign investment toward less developed areas within the country.

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About the Author:

Carlos Liard Muriente holds a BBA in Economics and Finance from the University of Puerto Rico, and a PhD in Economics from the University of Massachusetts. He is an Associate Professor at Central Connecticut State University, where he teaches and conducts research in the areas of Development, International Economics, and Macroeconomics.

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