| 1. |
- Baccini, Leonardo, et al.
(författare)
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Corporate Tax Cuts and Foreign Direct Investment
- 2014
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Ingår i: Journal of Policy Analysis and Management. - : Wiley. - 0276-8739. ; 33:4, s. 977-1006
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Tidskriftsartikel (refereegranskat)abstract
- Accurate policy evaluation is central to optimal policymaking, but difficult to achieve. Most often, analysts have to work with observational data and cannot directly observe the counterfactual of a policy to assess its effect accurately. In this paper, we craft a quasi-experimental design and apply two relatively new methodsthe difference-in-differences estimation and the synthetic controls methodto the policy debate on whether corporate tax cuts increase foreign direct investment (FDI). The taxation-FDI relationship has attracted wide attention because of mixed findings. We exploit a quasi-experimental design for Russian regions, which were granted autonomy to reduce corporate profit tax in 2003, enabling them to simultaneously experiment with different tax policies. We estimate both the average and local treatment effects of two types of tax cuts on FDI inflows. We find that, on average, relative to the absence of tax cuts, nondiscriminatory tax cuts on direct investment profit increase FDI, but discriminatory tax cuts on selected government-sanctioned investment projects do not. Yet for both types of tax cuts, local treatment effects vary dramatically from region to region. Our research has important implications for the design of tax policy and fiscal incentive, and the assessment of fiscal policy reforms.
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| 2. |
- Bergh, Andreas, et al.
(författare)
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Do the poor benefit from globalization regardless of institutional quality?
- 2016
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Ingår i: Applied Economics Letters. - : Informa UK Limited. - 1466-4291 .- 1350-4851. ; 23:10, s. 702-712
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Tidskriftsartikel (refereegranskat)abstract
- Despite significant progress towards the Millennium goals, more than one billion people live on less than 1.25 US dollars per day. Previous research suggests that globalization stimulates poverty reduction, but does not investigate what role institutions play in this relationship. Theoretically, globalization could act as either a complement or a substitute to institutional quality in reducing poverty. We find that the poverty-reducing effect of globalization is stronger when institutions are weak. In particular, increasing social globalization reduces poverty more when corruption is high and democratic accountability is low. Thus, globalization has the power to reduce poverty even in countries with low institutional quality.
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| 3. |
- Bergh, Andreas, et al.
(författare)
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Globalization and institutional quality - A panel data analysis
- 2014
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Ingår i: Oxford Development Studies. - : Informa UK Limited. - 1360-0818 .- 1469-9966. ; 42:3, s. 365-394
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Tidskriftsartikel (refereegranskat)abstract
- Abstract in UndeterminedUsing data on institutional quality and the KOF Globalization Index, we examine over 100 countries from 1992 to 2010 to analyse the relationship between economic and social globalization and six measures of institutional quality, thereby testing Montesquieu's doux commerce thesis, that economic and social interaction lead to improved institutional quality. Results suggest that increasing economic flows and social globalization associate with improving institutions in rich countries, while correlations are negative in poor countries. Our findings also indicate that the negative relationship in poor countries relates to the abundance of natural resources, and should not be interpreted as a causal effect. In summary, results are consistent with the doux commerce thesis but also suggest that the previous findings of positive effects of trade on institutional quality are driven by the relationship in rich countries. We should not expect globalization alone to mitigate the adverse effects of the resource curse in developing countries
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