Fiscal Incentives Research Articles

Linking foreign direct investment to financial deepening: Evidence from sub‐Saharan Africa

AbstractIn this study, the nexus between Foreign Direct Investment (FDI) and financial deepening is critically examined. The study employed a robust dynamic panel cross‐sectionally augmented distributed lag method for 31 countries in sub‐Saharan Africa (SSA). The results reveal that: (1) a strong significantly positive long run impact of FDI on financial deepening exists; (2) real gross domestic product (GDP), trade openness and government effectiveness stimulate the positive FDI–financial deepening nexus; (3) the strength of the FDI–financial deepening nexus also depends on the percentile position in the income distribution of SSA countries (countries in the upper strata of the income distribution evidently had stronger FDI–financial deepening relations than those in the lower strata and (4) real GDP, trade openness and government effectiveness also enhance financial deepening in SSA. The study recommends that governments in SSA should foster fiscal, financial and regulatory incentives for attracting FDI for improved financial depth in SSA by: strengthening the regulatory frameworks and institutions of governance through the removal of unwarranted governmental interferences in the administration of justice and electoral processes; removing multiple tax regimes; and stabilizing prices and exchange rate volatility via stimulating local productivity and guaranteeing the rule of law, political stability and security of life and property in the region.

To Study the Role of Forest –Based Industries in Promoting Trade

Since the prevailing business model is based on capturing comparative advantages at the right cost, the forest products industry has made strong efforts to open up to global trade. In many emerging countries, forests are valued, processing industries seek more employment, and raw materials seek additional value (Lash, J., & Wellington, F. (2007)). In the forest products industry, international investors are willing allies; however, they wish to ensure the macroeconomic climate is predictable, transparent fiscal incentives are in place, and there is an abundance of labor - and preferably a sustainable wood supply from the beginning. The domestic market should be dynamic in order to attract foreign investments since many emerging economies have bustling urban markets that lack high-quality forest products.

Organizational and legal assessment of the impact of relocation on the investment and economic policy of enterprises

The object of the study is the process of relocation of Ukrainian enterprises both within the country and abroad. The problem of the study, first of all, is that the relocation of business for domestic business entities was not very relevant recently, and the practical experience of moving capacities is practically absent. An analysis of the difficulties encountered by entrepreneurs when deciding to relocate the company was carried out. In addition, the study examines the enterprise relocation program proposed by the government and its shortcomings that make it difficult to use. It was determined that among the main problems of the state program of relocation are the insufficient information base and awareness of the existing program, the lack of established communication between the participants of the process. It was emphasized that entrepreneurs need additional financing for the time of adaptation and stabilization of their business in new regions, expansion of infrastructure in the form of creation of business incubators, business hubs and business accelerators. However, there are almost no innovative relocation companies in the studied regions. It is necessary to stimulate innovative activity with long-term sectoral development programs and fiscal incentives, since the relocation of enterprises in modern conditions is an effective tool for the restoration of entrepreneurial activity in new regions of the country, which in turn ensures the relative stability of the economy, provides jobs, guarantees the production of national products and services, as well as the possibility of their implementation on the international market. Potential solutions have been analyzed and determined, which can contribute to revitalizing the relocation of businesses and making the process more successful. However, this requires state support and additional funding, which will help bring the enterprise relocation program to a new level, which in turn will help enterprises to continue their activities and have a positive impact on the state's economy. This study can become a reference point for Ukrainian business in the near future. Also, the research can be useful for the authorities, the public and the university environment.

Revitalizing from Ashes: Economic Development and Business Resilience in the City of Vukovar

The paper examines a paradigmatic example of post-conflict economic development of Vukovar, Croatia. It represents a pertinent case study for localities encountering analogous challenges, most notably urban areas in Ukraine in the near future. The war that broke out in 1991 brought significant human casualties, population displacement, and extensive destruction of residential, social, and economic infrastructure. The completion of the peaceful reintegration of Vukovar into Croatia’s legal system in 1998 marked the beginning of the socio-economic revitalization process. The research scrutinizes the primary impediments and prospects for Vukovar’s economic growth, probing why substantial investments in reconstructing housing, transport, communal infrastructure, and fiscal incentives for businesses have not paralleled its economic performance. It concentrates on the local business climate and influential factors as potential explanations for this discrepancy. The topic was designed as a case study and was covered by document analysis, survey method, and semi-structured interviews. Utilizing a mixed-methods approach, the study collates perspectives from entrepreneurs and business support institutions. The results confirmed that reconstruction of housing and social infrastructure is necessary, but more conditions are needed for successful post-conflict economic development, and that the business climate in lagging local units highly depends on state- and locally designed business-support measures.

Research on Antecedent Configuration of Smart City Governance Path: Qualitative Comparative Analysis of Fuzzy Sets Based on 30 Cities in China

This study focuses on 30 typical cases of smart cities in China, constructing an analytical framework that includes seven explanatory factors: information infrastructure, administrative pressure, government attention, public service level, financial support, technical talent, and government-enterprise cooperation. Utilizing the fuzzy set qualitative comparative analysis method, the study conducts configuration analysis of the influencing factors for the efficient construction of smart cities. The research reveals that government-enterprise cooperation and the public service level are crucial factors for achieving high construction efficiency in smart cities. These are collectively categorized into three construction models: "service innovation type driven by pressure," "multi-factor-induced type driven by technology," and "proactive follow-up type under fiscal incentives." The results of the study provide reference points for the construction of smart cities in different regions of China. Urban governments should undertake strategic and combinational construction actions based on their unique characteristics and resource endowments.

Fiscal Incentives for Hotels in the City of Buenos Aires, Argentina

Summary This case study focuses on the Hotel Sector Promotion Scheme, a programme implemented in the City of Buenos Aires, Argentina, for the period 2019–2023. The scheme provides fiscal incentives in the form of tax credits for developing and improving hotel infrastructure in the city. To explore this case, we use secondary data from the City Legislature and media outlets specialising in tourism, as well as primary data from interviews with tourism stakeholders. By reviewing the programme and its particularities, this contribution sheds light on the interface between policy making, evidence use and partnerships. Information © The Authors 2024

A Traditional and Non-traditional Export Performance Assessment: An empirical examination of factors enhancing the competitiveness of Zambia's Exports

This study examined the performance of traditional and non-traditional exports and further analyzed the factors that determine their performance in Zambia using a time series analysis (1960 and 2021). With the aid of the Vector error correction model, the study found that increases in the Real GDP, and Foreign Direct Investment of Zambia positively and significantly affected the volume of exports. In the analysis of aggregate exports, the non-significance of the relative price elasticity (Foreign Exchange rate) suggests that trade policies that concentrate overly on expenditure switching such as tariff and non-tariff restrictions or devaluations do not effectively assist trade policy reform efforts. The study thus recommends the need to promote inclusiveness, diversification and growth in investment towards the production of export commodities, particularly through the Multi-Facility Economic Zones by providing incentives to expand export diversification and growth at the local level through revising the Fiscal and non-Fiscal incentive thresholds in MFEZs to reflect the financing capacity of local investors.

Adoption intention and willingness to pay for electric vehicles: role of social-psychological attributes, fiscal incentives and socio-demographics

PurposeThe purpose of this present study is to analyze the role of consumers' social-psychological attributes, fiscal incentives and socio-demographics in the adoption intention and the willingness to pay more for electric vehicles (EVs).Design/methodology/approachA cognitive linkage model of “beliefs-intention-willingness” is analyzed using valid responses obtained from Indian consumers. The model is statistically tested at three levels: direct path effect of social-psychological attributes with financial incentives (subjective norm, personal norm, affective attitude, perceived knowledge) on adoption intention and willingness to pay, followed by the mediation of intention and the moderation of socio-demographics.FindingsThe findings reveal that the adoption intention and the willingness to pay are directly driven by all analyzed factors except financial incentives, which is not significantly associated with willingness to pay. Moreover, the adoption intention partially mediated the relation between all socio-psychological measures and willingness to pay, whereas full mediation of incentives is supported. Furthermore, the moderating effect of socio-demographics (gender, education, income) supports the integrated research model.Research limitations/implicationsThe generalizability of findings may be warranted due to the limited sample territory and the sample's youth. However, young people, or millennials, are more receptive to new technologies such as electric or carbon-free automobiles. The research advocates marketers and manufacturers to craft policy interventions and strategies to upsurge the EV demands in the backdrop of emerging markets.Originality/valueThis timely study adds to the extant literature on green and clean technology automobile adoption by exemplifying the relationship between socio-psychological beliefs, intention and willingness to pay at three dimensions of contextual factors. The current study endeavors to endorse the “beliefs-intention-willingness” cognitive linkage framework in the context of Indian green transportation.

The impact of environmental policy on renewable energy innovation: A systematic literature review and research directions

AbstractRenewable energy innovations are imperative to tackle the climate change crisis. However, there is a gap in the literature regarding the effectiveness of environmental policies in promoting renewable energy innovations. To bridge this gap, we have adopted a systematic literature review process covering the period from 2005 to 2023. We identified and analysed 29 articles in our final sample. Further, we employ two levels of analysis (individual‐policy and policy‐mix levels) for analysing the extant research. Our findings show that fiscal incentives and emissions trading policies such as the European Union (EU) Emissions Trading System (ETS) consistently promote renewable energy innovations. In contrast, the effectiveness of feed‐in tariffs and quotas in supporting renewable energy innovations varies, reflecting diverse impacts across distinct regions and renewable energy technologies. Our analysis also suggests that combinations of various policy types can enhance innovation more effectively than individual policies. We contribute to the extant literature by developing a classificatory analysis of the effect of environmental policies on renewable energy innovations. Our review also provides research directions for future scholarship.

Determinants of efficient water use and conservation in the Colombian manufacturing industry using machine learning

Water is a fundamental aspect of achieving sustainable industries, and it is essential for firms to make efficient use of it. However, not all companies have sustainable water management practices in place. In this study, we aim to answer the research question: What factors influenced the efficient use and saving of water in the Colombian manufacturing industry in 2020? We used data from the Annual Manufacturing Survey and the Industrial Environmental Survey conducted by DANE to investigate this question. Our study grouped the variables into four categories: Environmental commitment, Risk mitigation, Innovation, and Location. We used two supervised learning machine-learning algorithms—decision tree and logit regression with LASSO regularization—to analyze the data. The results underscore those investments in wastewater treatment, total water consumption, and commitments to air and climate protection emerge as pivotal drivers for embracing sustainable practices. Moreover, the geographical location of companies significantly influences the likelihood of implementing water conservation initiatives. To enhance efficient water use and conservation in the Colombian manufacturing sector, several targeted public policies are recommended. These include offering fiscal and financial incentives to encourage investments in advanced wastewater treatment and reuse technologies. Additionally, advocating for specialized training and environmental education programs tailored for corporate personnel is crucial. Moreover, establishing initiatives for environmental certification and eco-labeling within the corporate sector can significantly promote sustainable water practices. Lastly, enforcing more stringent environmental regulations and standards, especially for industries like Textile, Metallurgy, and Manufacturing of rubber and plastic products, is essential to ensure responsible water management across the sector.

ПІДТРИМКА РОЗВИТКУ ІННОВАЦІЙНОГО ПІДПРИЄМНИЦТВА В УМОВАХ РЕЛОКАЦІЇ

The article presents the results of the analysis of the theoretical, organizational and practical foundations of supporting innovative enterprises and entrepreneurship in the conditions of business relocation under wartime conditions. The organizational and logistical measures of government support for relocated business, the conditions for its further adaptation, including the enterprise relocation program, are considered, and the shortcomings that complicate its implementation are indicated. It was determined that among the main problems of the state program of relocation are the insufficient information base and awareness of the existing program, the lack of established communication between the participants of the process. Potential solutions have been analyzed and determined, which can contribute to revitalizing the relocation of businesses and making the process more successful. The need for state support and additional financing was emphasized, which will help bring the enterprise relocation program to a new level, which, in turn, will help enterprises continue their activities and positively influence the development of the state economy. The assessment of the main indicators of innovative activity in Ukraine was carried out. Statistics of enterprises that need relocation and statistics of the number of applications regarding requests for relocation of enterprises in 2022 are provided. Popular business relocation routes in Ukraine have been identified and evaluated. The complexities of relocation are analyzed and potential solutions are identified that will help increase the effectiveness of the state relocation program. Two groups of entrepreneurs are identified and described: those who chose relocation as a way to save their business and did not think about it until the full-scale war; and those who considered such an option and saw in it an opportunity for growth. It was established that in Ukraine there are almost no relocating enterprises working in the innovative field, which has been very neglected in recent years, as it is absolutely not stimulated by long-term sectoral development programs or fiscal incentives.

АНАЛІЗ ТА ПЕРСПЕКТИВИ РОЗВИТКУ АВІАТРАНСПОРТНОЇ ГАЛУЗІ УКРАЇНИ

The development of the air transportation industry of Ukraine is studied. The main trends of international and domestic air transportation, differences in the dynamics of cargo and passenger air transportation and changes that occurred under the influence of economic and political factors, as well as those caused by the pandemic and military events are identified. The competitive position of Ukrainian and foreign airlines in the international air transportation market is analyzed. The main reasons for the weak development of domestic air transportation are identified. The structure and main models of Ukrainian airports are analyzed. The regression models of passenger and cargo traffic of air transport are built, determined by the influence of the main macroeconomic indicators, which can be used for strategic forecasting of the development of the air transport industry in the post-war period. The article describes the perspective models of development of airlines and airports in Ukraine. Tough competition will lead to the fact that Ukrainian airlines, if they continue to exist, are likely to move to the model of small “hybrid airlines” or become ACMI operators. Due to the lack of access to cheap financial resources, Ukrainian airlines will gradually be pushed out of the market by foreign competitors. By lowering barriers to entry, new small Ukrainian regional airlines will emerge in the regions, operating on secondary routes that are not of interest to foreign carriers. The air transportation industry will move from the Hub-and-Spoke network model to the Point-to-Point model. Airports will have low profitability due to significant price pressure from low-cost airlines, and significantly lower revenues from aviation and non-aviation activities. Such airports will need government support to ensure their operation. After the opening of the airspace, considerable efforts will have to be made to stimulate and stabilize the development of air transportation, in particular in the areas of regulatory and legal regulation, organizational and managerial support, fiscal and monetary incentives, investment and innovation, and workforce.

The Shapeshifting Hat: Strategic Response to Fiscal and Political Incentives of Chinese National Poor Counties

The Shapeshifting Hat: Strategic Response to Fiscal and Political Incentives of Chinese National Poor Counties

Short Review of Solar Energy Markets and Policies for Smart Cities Development

This paper presents a meticulous review of the solar energy markets and their instrumental role in driving the growth of smart cities. Drawing from extensive research, the review delves into urban metamorphoses spurred by the burgeoning growth of megacities, highlighting the significance of sociotechnical systems, evolved institutional practices, and energy material flows. The study identifies seven pivotal models for smart city energy governance, encompassing distributed energy resources, energy storage, microgrids, demand response, smart measuring systems, energy harvesting, and green technological innovations. A comparative analysis of urban developments in cities such as Singapore, Shanghai, and the greater Jakarta area reveals diverse trajectories in energy system evolution and business model shifts. The surging growth of solar energy, underpinned by technological breakthroughs, cost efficiencies, and robust governmental policies, is also explored. Although solar energy has been bolstered by a myriad of fiscal and regulatory incentives, it faces persistent challenges like technical impediments, financial barriers, and regulatory obstacles. The paper also introduces an innovative compound Real Options Approach (ROA) for appraising solar energy projects within smart cities, arguing its efficacy over the traditional Expected Net Present Value methods by recognizing managerial adaptability. In summation, this review accentuates the imperative of enduring policy support to amplify solar energy adoption worldwide, setting the stage for a sustainable smart city future.

Skimming the Achieved? - Quantifying the Fiscal Incentives of the German Fiscal Equalization Scheme and its Reforms Since 1970

Skimming the Achieved? - Quantifying the Fiscal Incentives of the German Fiscal Equalization Scheme and its Reforms Since 1970

The effects of intergovernmental transfers on the local fiscal incentives of Brazilian municipalities

The objective of this work is to analyze the impact of fiscal decentralization on the behavior of Brazilian municipal policymakers. This work uses the first three cutoffs of the transfer rules of the Municipal Participation Fund (FPM) and applies a regression discontinuity designs (RDD) to capture the effects that have impacted municipal budget rates from 2013 to 2016. The comportment hypothesis is that transfer gains can generate (a) perverse incentives, if the gains are earmarked for personnel and administrative expenses or if they decrease revenue, or (b) beneficial incentives, if the main gains are spent on education or health. The results found for the estimates of the data panel model suggest that an increase in exogenous revenue generates a significant increase only in spending on administrative and sports and leisure functions and that the possible channel for this increase in expenses should be aimed at increasing the number of employees with commissioned position. These results indicate that the transfers generate only perverse incentives. This article explores how local managers allocate their resources according to their additional budget. Unlike the other works, we look for the mayor's behavior in relation to spending on the employment of commissioned civil servants, which can lead to perverse incentives.

Navigating the Digital Society: Financial Literacy as a Tool for Empowerment

In an era of an increasingly digitalized society, digital financial literacy has become a necessity to equip individuals with the knowledge and skills necessary to manage personal finances and take advantage of investment opportunities in a complex digital economic environment. This research aims to deepen understanding of financial literacy in a digital society and identify existing challenges and opportunities. This research uses a descriptive qualitative approach with data obtained from various research results and previous studies that are relevant to this research. The results of this research identify challenges, such as lack of motivation and complexity of financial products, as well as challenges measuring literacy levels and inequality of access. To achieve more equitable and sustainable financial literacy, fiscal incentives can also be used to encourage community participation in financial literacy programs. With the joint efforts of government, the financial industry, and society, we can achieve a more financially aware and skilled society in this ever-evolving digital era.

Digital Banking dalam Akselerasi Pemberdayaan Ekonomi Womenpreneur Indonesia : Eksplorasi Sosial-Ekonomi dan Peran LPS Berbasis PLS-SEM

ABSTRACT Integrating technology in the digital 5.0 society, including artificial intelligence, cloud computing, and financial services, is creating a new business model: digital finance (FinTech). Indonesia's focus on economic logistics systems, FinTech development, and economic integration has positively impacted the real economy. However, digital financial innovation also brings risks, such as market uncertainty. After the pandemic, digital financial inclusion empowers women to reduce the gender gap. The history of women's economic role, such as in early Islam, highlights their success in this sector. Government measures, such as inclusive programs, show efforts to encourage women's role in the digital economy but improved financial literacy and structural support are still needed. This study aims to analyze the determinants of socio-economic conditions and the role of the Indonesian Deposit Insurance Corporation (LPS RI) in women's economic empowerment through digital banking services. This study chose a quantitative approach by conducting an online survey of 306 Indonesian womenpreneurs. The respondents' data was further analyzed using the SEM PLS analysis technique to test the proposed hypotheses. The results showed that digital banking is significant for womenpreneur empowerment in Indonesia. Financial literacy is strong, infrastructure is solid, and government support is in its favor. LPS RI protects digital banking services. recommendations including literacy campaigns, training, technology infrastructure, fiscal incentives, and government-LPS cooperation to advance womenpreneurs with financial technology.

Analisis Penjualan Mobil Listrik Di Indonesia Dalam Rentang Waktu 2020-2023

The automotive industry in Indonesia is growing rapidly with electric car sales increasing significantly by 2022. Hyundai is one of the largest electric car manufacturers in Indonesia, supported by the IK-CEPA (Indonesia-Korea Comprehensive Economic Partnership Agreement), a bilateral free trade agreement between Indonesia and South Korea in various fields such as trade in goods, services and other economic cooperation. The Indonesian government is also active in supporting the development of the electric vehicle industry through fiscal and non-fiscal incentives, as well as cooperation with Hyundai Motor Group in training electric vehicle technicians. Sales of electric cars in several brands and types such as Hyundai Kona EV, Hyundai Ioniq EV, and Lexus UX300e have increased from 2020 to October 2023, showing public interest in electric cars. Hyundai Ioniq 5 became the best-selling electric car in Indonesia in 2022, while the newly released Wuling Air EV in August 2022 also received attention for its affordable price and unique design. Indonesia has the largest nickel reserves in the world, so it has a great ability to make electric vehicle batteries. This will drive the development of the electric car industry in the country, with strong government support and increasing sales, the automotive industry, especially electric cars, will have a bright prospect to continue growing in the future.

Strategies for sustainable economic growth: The role of green taxation and renewable energy investment in the U.S

This review paper delves into the critical role of green taxation policies and renewable energy investments in fostering sustainable economic growth in the United States. It scrutinizes the effectiveness of current tax incentives and policies in propelling investments in renewable energy, evaluating their contributions to environmental conservation and sustainable development. The study is anchored on a comprehensive literature review approach, focusing on selecting relevant studies and reports that shed light on the integration of technology in social work, particularly in the African context and its implications for U.S. practice. The findings reveal that while green taxation and renewable energy investments offer significant benefits in terms of reducing pollution and promoting sustainable energy sources, their environmental impacts must be carefully managed. The paper also explores the interplay between green taxation and public health policy, assessing how environmental tax reforms can contribute to a healthier U.S. population. In conclusion, the study provides policy recommendations for enhancing the U.S. position as a leader in environmental stewardship and sustainable economic practices. It underscores the need for a multifaceted approach that includes fiscal incentives, supportive regulatory frameworks, strategic financing mechanisms, and public-private collaboration. Future research should focus on addressing the identified gaps, particularly in exploring innovative financing mechanisms and assessing the long-term impacts of these policies on economic growth and environmental sustainability.