Air pollution is one of the crucial environmental challenges facing the countries of the Economic Community of West African States (ECOWAS). The objective of this paper is to examine the effect of an attractive tax po...Air pollution is one of the crucial environmental challenges facing the countries of the Economic Community of West African States (ECOWAS). The objective of this paper is to examine the effect of an attractive tax policy on the relationship between Foreign Direct Investment (FDI) and air pollution in ECOWAS region over the period 2000 to 2019. By using the Ordinary Least Squares (OLS) method and panel data analyses (fixed effects and random effects), the results show that, in general, FDI does not have a significant effect on air pollution in the region. However, closer analysis reveals that an interaction between FDI and an attractive tax policy has a negative effect on air quality, leading to an increase in air pollution. Thus, companies attracted by tax incentives may not meet rigorous environmental standards. These results highlight the importance for policymakers to balance economic incentives with environmental protection in ECOWAS. Attractive tax policies can stimulate investment, but they must be designed in a way that encourages environmentally friendly practices, thereby helping to improve air quality in the region.展开更多
In light of recent tax cuts by the US, should China reintroduce a preferential tax policy to attract foreign direct investment？ This paper investigates whether China＇s 2008 tax policy change affected inward foreign ...In light of recent tax cuts by the US, should China reintroduce a preferential tax policy to attract foreign direct investment？ This paper investigates whether China＇s 2008 tax policy change affected inward foreign direct investment. In contrast to previous studies, we break foreign investment down into suspect and real foreign investment using firm- level data from 1998 to 2008 and conduct a difference-in-difference estimation to determine the effect of the tax policy change on both types of foreign investment and compare these to the effect on domestic investment. The results show that the 2008 tax policy change reduced the amount of suspect foreign investment and its effect on real foreign investment was insignificant, indicating that foreign firms in China are more concerned with the investment environment and economic stability than taxes. Therefore, China should create a regulated business environment instead of readopting supernational treatment for foreign enterprises.展开更多
The global economic uncertainty is mounting.Governments need to respond with supporting measures for long-term external environment changes as they lower tax burden to attract working capital.Based on the asymmetric t...The global economic uncertainty is mounting.Governments need to respond with supporting measures for long-term external environment changes as they lower tax burden to attract working capital.Based on the asymmetric tax competition theory,this paper constructs a theoretical model of tax burden,institutional transaction costs and FDI flow.It is found that one country’s strength of institutional environment makes its equilibrium tax rate higher than that of another within certain limits of market size.Based on the data of 199 countries and regions from 2005 to 2018,this paper conducts an empirical analysis,proving that favorable institutional environment narrows the negative impact of tax burden on FDI fl ow.Moreover,it is showed that in small-market,low-income countries and regions,tax burden level has a larger negative impact on foreign direct investment(FDI)when institutional environment produces no positive impact;in large-market,high-income countries,the negative impact of tax burden is relatively weak but the institutional environment shows largely positive impact.This paper contributes some policy recommendations on how to make use of and improve institutional environment to meet challenges and impacts of the international economic climate.展开更多
文摘Air pollution is one of the crucial environmental challenges facing the countries of the Economic Community of West African States (ECOWAS). The objective of this paper is to examine the effect of an attractive tax policy on the relationship between Foreign Direct Investment (FDI) and air pollution in ECOWAS region over the period 2000 to 2019. By using the Ordinary Least Squares (OLS) method and panel data analyses (fixed effects and random effects), the results show that, in general, FDI does not have a significant effect on air pollution in the region. However, closer analysis reveals that an interaction between FDI and an attractive tax policy has a negative effect on air quality, leading to an increase in air pollution. Thus, companies attracted by tax incentives may not meet rigorous environmental standards. These results highlight the importance for policymakers to balance economic incentives with environmental protection in ECOWAS. Attractive tax policies can stimulate investment, but they must be designed in a way that encourages environmentally friendly practices, thereby helping to improve air quality in the region.
基金This paper was funded by the National Social Science Foundation of China （No. 16ZDA006） and the National Natural Science Foundation of China （Nos. 71773084 and 71373186）.
文摘In light of recent tax cuts by the US, should China reintroduce a preferential tax policy to attract foreign direct investment？ This paper investigates whether China＇s 2008 tax policy change affected inward foreign direct investment. In contrast to previous studies, we break foreign investment down into suspect and real foreign investment using firm- level data from 1998 to 2008 and conduct a difference-in-difference estimation to determine the effect of the tax policy change on both types of foreign investment and compare these to the effect on domestic investment. The results show that the 2008 tax policy change reduced the amount of suspect foreign investment and its effect on real foreign investment was insignificant, indicating that foreign firms in China are more concerned with the investment environment and economic stability than taxes. Therefore, China should create a regulated business environment instead of readopting supernational treatment for foreign enterprises.
文摘The global economic uncertainty is mounting.Governments need to respond with supporting measures for long-term external environment changes as they lower tax burden to attract working capital.Based on the asymmetric tax competition theory,this paper constructs a theoretical model of tax burden,institutional transaction costs and FDI flow.It is found that one country’s strength of institutional environment makes its equilibrium tax rate higher than that of another within certain limits of market size.Based on the data of 199 countries and regions from 2005 to 2018,this paper conducts an empirical analysis,proving that favorable institutional environment narrows the negative impact of tax burden on FDI fl ow.Moreover,it is showed that in small-market,low-income countries and regions,tax burden level has a larger negative impact on foreign direct investment(FDI)when institutional environment produces no positive impact;in large-market,high-income countries,the negative impact of tax burden is relatively weak but the institutional environment shows largely positive impact.This paper contributes some policy recommendations on how to make use of and improve institutional environment to meet challenges and impacts of the international economic climate.
