Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/189340 
Year of Publication: 
2006
Series/Report no.: 
Queen's Economics Department Working Paper No. 1060
Publisher: 
Queen's University, Department of Economics, Kingston (Ontario)
Abstract: 
In this paper, an integrated cash flow model is developed to examine the relative impact of tax incentives, financial subsidies, and macroeconomic variables on the profitability of industrial investments. It allows for various variables to interact with each other. An application of the model is carried out for Taiwan, which implemented a variety of fiscal incentives over the past forty years. The principal policy conclusion is that trade and macroeconomic policies are much more important than income tax incentives or subsidized finance policies in determining the success of industrialization process. The effects of any of the fiscal incentives are found generally much smaller than those of the trade policies or the fundamental trends in macroeconomic variables such as the movement of the real exchange rate and the real wage rate.
Subjects: 
tax incentives
export promotion
industrialization
real exchange rate
trade policy
Taiwan
JEL: 
H25
F13
O12
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.