Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/146450
Authors: 
Garsous, Grégoire
Corderi Novoa, David
Velasco, Mercedes
Year of Publication: 
2015
Series/Report no.: 
IDB Working Paper Series IDB-WP-644
Abstract: 
In recent decades, a significant number of developing countries have implemented fiscal incentives programs for the tourism industry as part of their regional development policies. The main objective of these programs is to increase local investment and employment, as tourism activities are labor intensive. Little evidence is available, however, to assess the effect of these policies on job creation. This paper analyzes a fiscal incentives program that the Brazilian federal government introduced in 2002 to develop the tourism industry in the undeveloped region of Northeast Brazil. It provides evidence that income tax credits had a significant positive effect on job creation. We find that local employment in the tourism industry was on average 34 percent higher in those municipalities that benefited from the program.
Subjects: 
local public economies
regional development
tax incentives
tourism
employment
JEL: 
H25
H71
L83
R58
Z32
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by-nc-nd/3.0/igo/legalcode
Document Type: 
Working Paper

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