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Tax Concessions and Foreign Direct Investment in the Eastern Caribbean Currency Union

Tax concessions have been employed as a central component of the development strategy in the small island states comprising the Eastern Caribbean Currency Union. This paper compares the costs of concessions in terms of revenues forgone with the benefits in terms of increased foreign direct investmen...

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Bibliographic Details
Main Author: Chai, Jingqing
Other Authors: Goyal, Rishi
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2008
Series:IMF Working Papers
Subjects:
Investments, Foreign
Finance
Public Finance & Taxation
Long-term Capital Movements
Corporations; Taxation
Tax Holidays
Exports And Imports
Corporate Income Tax
Business Taxes And Subsidies
Taxation, Subsidies, And Revenue: General
Consumption Taxes
Corporate Taxation
Corporate & Business Tax
Tax Incentives
Taxation
Spendings Tax
Foreign Direct Investment
International Investment
Antigua And Barbuda
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Description
Summary:Tax concessions have been employed as a central component of the development strategy in the small island states comprising the Eastern Caribbean Currency Union. This paper compares the costs of concessions in terms of revenues forgone with the benefits in terms of increased foreign direct investment. The costs are very large, while the benefits appear to be marginal at best. Forgone tax revenues range between 9½ and 16 percent of GDP per year, whereas total foreign direct investment does not appear to depend on concessions. A rethinking of the use of concessions in the region is needed urgently
Physical Description:33 pages
ISBN:9781451871159

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