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

Kód výsledku v 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>

Nalezeny alternativní kódy

RIV/60460709:41110/21:87173

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

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

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

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

Popis výsledku anglicky

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.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50701 - Cultural and economic geography

Projekt

—

Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2021

Kód důvěrnosti údajů

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

Název periodika

Sustainability

ISSN

2071-1050

e-ISSN

—

Svazek periodika

13

Číslo periodika v rámci svazku

15

Stát vydavatele periodika

CH - Švýcarská konfederace

Počet stran výsledku

12

Strana od-do

1-12

Kód UT WoS článku

000682254200001

EID výsledku v databázi Scopus

2-s2.0-85112110771