Impact of Tax Incentives on Foreign Direct Investment: Evidence from Africa

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60076658%3A12410%2F21%3A43902778" target="_blank" >RIV/60076658:12410/21:43902778 - isvavai.cz</a>

Alternative codes found

RIV/60460709:41110/21:87173

Result on the web

<a href="https://www.mdpi.com/2071-1050/13/15/8661" target="_blank" >https://www.mdpi.com/2071-1050/13/15/8661</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.3390/su13158661" target="_blank" >10.3390/su13158661</a>

Result language

angličtina

Original language name

Impact of Tax Incentives on Foreign Direct Investment: Evidence from Africa

Original language description

African countries have faced competition and several challenges to attract foreign direct investment given the role that FDIs play in the development process. Several efforts made have been futile because of numerous factors that play against the business environment for foreign investments. Our paper analyses the influence of tax incentives on foreign direct investment in African economies based on data from 2000–2018. We utilized panel data on forty (40) African countries and an econometric model of four proxies of tax incentives, after controlling other variables, with robust Random Effect as our discussion estimator. Our results revealed that FDI responds to lower corporate income tax (CTR). Furthermore, foreign direct investment predominates in African economies with longer tax holidays and withholding tax. However, tax concession is insignificant to the inflows of FDIs in Africa. Summarizing, our results recommend that without proper restructuring of the tax incentives to deal with policy lapses by the governments of Africa, achieving the four main goals, i.e., poverty eradication, sustainable growth and development, African integration in the competitive global economy, and women empowerment, will be hindered.

Czech name

—

Czech description

—

Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

—

OECD FORD branch

50701 - Cultural and economic geography

Project

—

Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2021

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Sustainability

ISSN

2071-1050

e-ISSN

—

Volume of the periodical

13

Issue of the periodical within the volume

15

Country of publishing house

CH - SWITZERLAND

Number of pages

12

Pages from-to

1-12

UT code for WoS article

000682254200001

EID of the result in the Scopus database

2-s2.0-85112110771