Business Incentives Research Articles

International experience in the use of instruments of tax incentives for small businesses

International experience in the use of instruments of tax incentives for small businesses

Business productivity and efficiency from aligning with sustainable development goals: Empirical evidence from ASEAN manufacturing firms

AbstractBusinesses' alignment with the United Nations' Sustainable Development Goals (SDGs) is enthusiastically highlighted in practitioner and academic literature. However, based on the existing evidence, it is still debatable whether the adoption of SDGs correlates with firm performance, especially in developing countries. Using Association of Southeast Asian Nations (ASEAN) manufacturing firms as a case study, we investigate the effects of businesses in developing countries aligning themselves with the SDGs might affect productivity and efficiency. Using 3471 firm‐level data from the World Bank's Enterprise Survey, our results reveal that aligning business strategies with the United Nations' SDGs helps promote productivity and efficiency. Paying higher wages (SDG 8) and promoting skills development (SDG4) can significantly boost productivity and efficiency. Investment in market innovation (SDG9), fostering foreign direct investment (SDGs 5–9), and adopting ISO certifications (SDGs 1–9 and 12–15) help firms increase their productivity and efficiency as well. Although a higher proportion of female workers correlate with reduced productivity and efficiency, supporting female workers with higher skills development (SDGs 4 and 5) and female CEOs (SDG 5) can increase productivity and efficiency. Therefore, policymakers in developing countries should provide supports and incentives for businesses to align their business strategies with the SDGs.

Fiscal Consolidation Strategy: Phased vs. Direct, Which is Better?

This research aims to examine the impact of fiscal consolidation on the US economy. Since COVID-19 caused the government to cut expenditures due to higher health and business incentive expenditures, fiscal consolidation is required. The analysis is divided into three parts. First, we assume that the decrease in government expenditure is accomplished in the first year. Second, we suppose that government expenditure is progressively reduced, by 0.25% in the first year, 0.50% in the second year, 0.75% in the third year, and 1% in the fourth year. The last scenario predicts that the rest of the globe will follow fiscal consolidation. Following the investigation, we can conclude that fiscal consolidation has a significant long-term influence on the economy. Even while real GDP is declining in the near term, reductions in government expenditure may enhance real GDP in the long run. Based on the comparison of the first and second scenarios, we can conclude that gradual fiscal consolidation is preferable since real GDP does not fall immediately in the first year. Furthermore, we know that the impact of fiscal consolidation in the third scenario is not as favourable as in the first and second scenarios regarding real GDP. As a result, we may assume that the fiscal consolidation policy will be less successful if other nations follow it.

Calibrating the EU’s Trade Dependency

As the energy crisis triggered by the Russian war against Ukraine vividly demonstrates, the EU suffers from inconvenient external dependencies. The trade dependence on China, the European Union’s main source of imports, could be an acute source of strategic vulnerability for the EU economy. Given the evident risks in maintaining close economic relations with authoritarian regimes, a policy change is needed to address the EU’s trade dependence, aimed not only at shifting economic incentives for businesses but also at reconciling sustainability goals with geopolitical priorities.

Європейський досвід антикризового податкового регулювання

Based on the analysis of statistical indicators, crisis periods for the economies of the EU member states have been identified. The impact of fiscal stimulation measures of the economy on expenses and tax revenues in individual EU member states is analyzed. The dynamics of changes in the highest statutory rates of personal income tax and corporate income tax in the EU member states in 2007–2021 are highlighted. It is established that during the global financial crisis, many EU member states introduced additional measures of anti-crisis tax regulation. Measures to reduce tax rates and introduce other tax preferences have become especially common. The peculiarities of tax incentives for businesses during the spread of the COVID-19 pandemic are considered. It was concluded that the selection of the incentive tool depended on the socio-economic situation in the country, the need to support certain sectors of the economy, and the ability of governments to reduce the tax burden while maintaining financial stability. The forecast of the impact of Russia's war against Ukraine on the functioning of the taxation sphere is given.

Siri, Stereotypes, and the Mechanics of Sexism

Feminized AIs designed for in-home verbal assistance are often subjected to gendered verbal abuse by their users. I survey a variety of features contributing to this phenomenon—from financial incentives for businesses to build products likely to provoke gendered abuse, to the impact of such behavior on household members—and identify a potential worry for attempts to criticize the phenomenon; while critics may be tempted to argue that engaging in gendered abuse of AI increases the chances that one will direct this abuse toward human beings, the recent history of attempts to connect video game violence to real-world aggression suggests that things may not be so simple. I turn to Confucian discussions of the role of ritualized social interactions both to better understand the roots of the problem and to investigate potential strategies for improvement, given a complex interplay between designers and device users. I argue that designers must grapple with the entrenched sexism in our society, at the expense of “smooth” and “seamless” user interfaces, in order to intentionally disrupt entrenched but harmful patterns of interaction, but that doing so is both consistent with and recommended by Confucian accounts of social rituals.

Media moments: how media events and business incentives drive twitter engagement within the small business community.

Twitter is one of the most popular social networking platforms today with nearly 238 million active daily users. While the platform is used by a myriad of individuals for various purposes, businesses both large and small have begun to adopt Twitter into their business strategy to better connect with consumers. Considering the growing emphasis on social media engagement in the business sector, the present study examines some of the fastest-growing American small businesses from the perspective of media events theory. According to media events theory, certain large-scale events will attract excess viewership and attention from the public, both on traditional and digital platforms. We examine how small businesses leveraged media events of 2020, including COVID-19 and the 2020 US presidential election, so as to increase engagement and foster the growth of their businesses via Twitter. Using 35000 tweets based on media event-related hashtags collected throughout 2020, we investigated Twitter engagement among 100 of the fastest-growing small businesses in the USA. Through the use of network analysis metrics, we illustrate that businesses that tweeted about media events often received greater levels of user engagement and exerted greater influence over their respective networks.

Does Central Environmental Protection Inspector Improve Corporate Social Responsibility? Evidence from Chinese Listed Companies

As an essential innovation in China’s environmental governance, the central environmental protection inspector policy (CEPI) plays a crucial role in driving the development of the corporate responsibility system. Using the difference-in-differences model with multiple time periods, samples of A-share listed companies in Shanghai and Shenzhen from 2013 to 2020 are chosen to examine the impact of the CEPI on corporate social responsibility within the context of China’s modern governance system. The results indicate the following: first, the CEPI can significantly promote enterprises to fulfil social responsibility; second, the local government environmental regulation and public participation are the dual guarantees for the effect of the CEPI’s policy, and market-based environmental regulation of the local government is more effective than command-and-control environmental regulation; and third, a high propensity for technological innovation is a critical incentive for businesses to fulfil their social responsibilities under the CEPI. For enterprises to actively respond to society, the compensation effect of innovation must be greater than its cost effect. By examining the interaction between the Central Government, the local government, companies and the public, this research aims to provide theoretical support for accelerating the creation of China’s contemporary environmental governance system.

Governing Emotions: Hybrid media, Ontological Insecurity and the Normalisation of Far-Right Fantasies

Focusing on the debates on ‘due impartiality’ provided to far-right leaders in Swedish media, this article uses a Lacanian approach to address the relationship between the practices of normalisation of far-right discourses and fantasies, and the evolution of emotional governance at the interstice of old (i.e. traditional) and new (e.g. social media) media. Emotional governance refers to the everyday emotionally charged utterances and statements made by political leaders. However, this phenomenon can also be read in a larger Foucauldian sense as techniques of surveillance, control and manipulation and as related to narrative representational fantasies. Studies dealing with the normalisation of far-right discourse from a media perspective tend to focus on framing, journalistic norms, market structures and business incentives. We aim to expand these perspectives by opening a discussion on the interplay between the ontological (in)securities attached to the emotional governance of far-right leaders, and the techno-social affordances and roles provided to (and by) ‘old’ and ’new’ actors in the hybrid media ecosystem. We further analyse this interplay by looking at the particular fantasies embedded in it and the consequences of the enactment of ‘due impartiality' and equal footing’ norms and practices in the Swedish media landscape.

The effect of air pollution on Chinese green bond market: The mediation role of public concern

Green bonds are becoming increasingly important in sustainable investments since their environmental protection attributes allow them to benefit from environmental degradation. However, the mechanism of environmental degradation on green bonds has not yet been studied. This study proposes a mediation model to analyze air pollution's influence on green bonds. Theoretically, air pollution leads to increased public concern through public environmental awareness and perceptions of physical health risks. Enhanced public concern drives investors' green preference and environmental responsibility, thus expanding green bond demand, in which public concern plays an important mediation role. To verify the mediating effect, causal stepwise regression and bootstrap methods are used. The empirical results confirm this theoretical mechanism. Air pollution is significantly positively related to public concern. Public concern is positively linked with green bond investment willingness, resulting in increased volatility. The total positive effect of air pollution on green bonds is partly absorbed by the mediating effect of public concern that is significantly positive and reaches 30.21% of the total effect. In addition, major crisis events (e.g., COVID-19) may hinder the positive mediation process by generating a negative trend and distracting the public. This means that the government could propose appropriate measures to minimize the negative aspects in order to promote green finance. The mediation model is also useful for investors wishing to increase green assets in their portfolios and provides an incentive for businesses to promote green finance.

Spendemic: Japan’s Marketing of Mythical Creatures and the Business of Selling Hope

With their roots in animism and Shintōism, Japan’s mythical creatures known as yōkai have been feared, revered, and used to explain calamities or inexplicable phenomena. Needless to say, in the early stages of the COVID-19 outbreak and even now to some extent, very little was known about the origins of the virus, its potency, and how it could be prevented or treated effectively. Naturally, this threw most countries in the world into a state of confusion and Japan was no exception. However, as opposed to seeking answers from conspiracy theories to make sense of the unknown, Japan turned to アマビエ(Amabié) – a mermaid-like yōkai known for prophesizing either an impending epidemic or an abundant harvest. While Amabié offers no explanation, advice or immediate help, it is believed that by recreating manifestations of its image, people can defend themselves against illness. Whether it was wishful thinking or simply a trend is debatable, but countless artists, city councils, product manufacturers, and shrines around the country all jumped onto the bandwagon of producing and promoting products with images of Amabié in 2020. Although their motives varied and a sense of hope certainly inspired the production and consumption of Amabié, in this article I argue that the profit factor was a major incentive for shrines and businesses who invested in the trend. I will demonstrate this by drawing upon previous research on the commodification of religion while providing examples of the commodification of Amabié by local, corporate, and secular entities.

ML-Based QoE Estimation in 5G Networks Using Different Regression Techniques

Monitoring and providing customers with a satisfying Quality of Experience (QoE) is a crucial business incentive for mobile network operators (MNOs). While the MNO is capable of monitoring a vast amount of network-related key performance indicators (KPIs), it typically does not have access to application-specific performance metrics. Among others, this is due to practical obstacles, such as missing standardized interfaces between the network and the application. Existing QoE models allow to map collected KPIs to the user-perceived quality. However, they are not dynamic, cumbersome to obtain, and often rely on application-level information, such as the stalling duration in the case of video streaming. The 5G networking architecture provides new features which can potentially overcome current limitations of in-network QoE monitoring. More specifically, the Application Function (AF) provides a standardized interface for communicating between 5G systems and third parties, such as application providers. The Network Data Analytics Function (NWDAF) is capable of collecting a vast number of network statistics from other 5G network functions and is dedicated to training and deploying Machine Learning (ML) models. This opens new possibilities, unimaginable for earlier mobile network generations, to dynamically learn the relationship between network KPIs and QoE by utilizing ML. Besides elaborating on how the new capabilities introduced with 5G can support an ML-based QoE estimation, we perform a simulation-based feasibility study which evaluates the estimation accuracy of different state-of-the-art regression techniques. In addition, we discuss them with respect to various qualitative aspects from an MNO’s point of view.

Wisconsin's Lavish Lure for Foxconn: An Instructional Case in Governmental Accounting

ABSTRACT In 2017, Wisconsin signed one of the largest U.S. business incentive contracts with Foxconn Technology Group, a Taiwanese electronics corporation best known as the main assembler of Apple's iPhone. In exchange for Foxconn's pledge to build a $10 billion manufacturing complex and hire 13,000 workers, Wisconsin's state and local governments offered more than $4 billion in subsidies. However, Foxconn's promises were unfulfilled. This case uses Wisconsin's lavish deal with Foxconn to examine the causes and complexities of targeted business incentives deployed by state and local governments. The case further analyzes Annual Comprehensive Financial Reports to assess the impact of the Foxconn project on governments' financial condition. This case is intended for courses with a governmental accounting component. It is scalable, and instructors can choose from multiple parts of the case questions according to their needs.

A formal model for assessing the economic impact of animal welfare improvements at bovine and porcine slaughter

AbstractThe relationship between animal welfare at slaughter and slaughterhouse profitability is complex, with potential trade-offs between animal welfare costs and benefits. Slaughterhouses currently lack data support for decisions on investments that can improve both animal welfare and profitability. Therefore, this study mapped the economic impacts for slaughterhouse businesses of improved cattle and pig welfare at slaughter. Specific aims were to: (i) highlight the possible economic impact of animal welfare improvements, based on the scientific literature; (ii) develop an economic model demonstrating the theoretical contribution of animal welfare to slaughterhouse profitability; and (iii) validate the economic model through focus group interviews with slaughterhouse personnel in Sweden. The findings indicated that investing in animal welfare improvements could result in accumulation of an intangible asset that can be considered together with other production factors in the economic model. Model validation stressed the importance of selling by-products for the economic outcome and of smooth workflow for productivity. The study thus improves understanding of the economic impacts of animal welfare at slaughter and incentives for slaughterhouse businesses to improve animal welfare. The results are important for public and private policy-makers interested in enhancing animal welfare at slaughter.

Pro-Con Debate: Should Code Sharing Be Mandatory for Publication?

In this Pro-Con commentary article, we discuss whether or not code sharing should be mandatory for scientific publications. Scientific programming is an increasingly prevalent tool in research. However, there are not unified guidelines for code availability requirements. Some journals require code sharing. Others require code descriptions. Yet others have no policies around code sharing. The Pro side presented here argues that code sharing should be mandatory for all scientific publications involving code. This Pro argument comes in 2 parts. First, any defensible reason for not sharing code is an equally valid a reason for the manuscript itself not being published. Second, lack of code sharing requirements creates 2 tiers of science: one where reproducibility is required and one where it is not. Additionally, the Pro authors suggest that a debate over code sharing is itself a decade out-of-date due to the emerging availability of containerization and virtual environment sharing software. The Pro argument concludes with an appeal that authors release code to make their work more understandable by other researchers. The Con side presented here argues that computer source codes of medical technology equipment should not be subject to mandatory public disclosure. The source code is a crucial part of what makes a particular device unique and allows that device to outperform its competition. The Con authors believe that public disclosure of this proprietary information would destroy all incentives for businesses to develop new and improved technologies. Competition in the free marketplace is what drives companies to constantly improve their products, to develop new and better medical devices. The open disclosure of these "trade secret" details would effectively end that competitive drive. Why invest time, money, and energy developing a "better mousetrap" if your competitors can copy it and produce it the next day?

Tax Incentives to Reinstate Tourism Post the COVID-19 Pandemic

The COVID-19 pandemic has brought about a great disruption in the value chain of businesses through the implementation of social and physical distancing policies, thereby affecting several aspects of Indonesian economy. One of the severely affected sectors is the tourism sector. To reduce the impact on tourism businesses, the government of Indonesia have provided them with an economic stimulus in the form of tax incentives. Thus, the current study investigated the impact of implementing tax incentives in the tourism sector from the post-COVID-19 pandemic standpoint. A descriptive qualitative research was conducted. Data were obtained from the Central Statistics Agency (BPS), the World Travel and Tourism Council (WWTC), the director-general of taxes, the articles on tax incentives in the tourism industry, as well as laws and regulations related to taxation and tourism. The analysis of data was done in three stages of analytical techniques – data collection, data reduction, and conclusion withdrawal. The results showed that the benefits of tax incentives for tourism businesses were to decrease in rates up to the exemption of income tax and to maintain the stability of the cash flow of tourism businesses. Furthermore, this policy will particularly help the businesses that have stopped operating either temporarily or permanently to get back on their feet.
 Keywords: tax incentives, tourism industry, COVID-19

Business Incentives for Local Economic Development

The main role of local development policy is to create a favorable business environment and new jobs, thus contributing to economic development. Creating a positive business environment to act as a pull factor for new businesses is of great importance, because entrepreneurship conduces to the rise in the supply of goods and to an increase in citizens’ income and revenues of local budgets. This paper therefore examines the main goals of economic development in the towns and municipalities of the Republic of Croatia, as well as the tools used by local governments to encourage entrepreneurship and new businesses. Using a questionnaire, mayors and deputies of towns and municipalities were surveyed, and the sample covered 131 towns and municipalities. The research methodology included a descriptive analysis and the Kruskal–Wallis test. The results indicate that improving the quality of life of the residents, creating new jobs, and retaining the residents in the town or municipality were identified as the most important goals of economic development. To encourage entrepreneurship and new jobs, towns and municipalities most often simplify regulations, reduce local taxes, and introduce various benefits and incentives. The contribution of the paper is manifested in providing useful guidance to local governments to improve the business environment.

Community based ecotourism management to strengthen environmental ethics and supports sustainable development in Pelalawan district, Indonesia

Pelalawan District has several natural attractiveness and indigenous knowledge potentially to be developed as ecotourism. The community-based ecotourism management (CBEM) by utilize indigenous knowledge as a part of tourist attractions is one of ways to improve environmental ethics and achieve sustainable development goals (SDGs). This paper was prepared to examine the potential of indigenous CBEM in Pelalawan District. Secondary data was used compiled from relevant literatures of previous research or provided by authorized agency. The data analysis method carryout by comparative descriptive interpretative qualitative analysis. It identified the gaps between the existing condition of CBEM versus standards. A conceptual framework and CBEM strategy were arranged to eliminate current management gaps. The analysis result shows that current indigenous CBEM yet optimal. It shows by the lack of management dimension aspect, includes: tenurial license, local ecotourism norm, land use planning, marketing, supporting regulation, environmental education, management capacity, infrastructures development, and business incentives. The strategies to eliminates CBEM gaps, as follows: (1) Integrated planning; (2) Feasibility analysis of village own enterprise (BMUDes); (3) Capacity development of staffs and community; (4) Enhances marketing system; (5) Accountability of management; (6) Integrated environmental education curriculum; (7) Continuous improvement; and (8) Supporting regulation. The research result was recommended as one of references for policy makers to develop indigenous CBEM planning for strengthen environmental ethics and SDGs achievement as integrated manner. Authors recommend to future researchers would be expanded the scopes of the literatures and collect primary data for its accuracy improvements.

Business activity of the population in the agrarian sector of the depressed area's economy

Subject. This article discusses the prospects of agricultural production in Russia. Objectives. The article aims to assess the development of entrepreneurial and economic activity in the agricultural sector of the depressed areas of the Far East of Russia, as well as identify possible measures to solve urgent economic problems. Methods. For the study, we used the methods of comparative analysis and classification. Results. The article finds that depressed agrarian areas are gradually adapting to the changed economic conditions through the development of entrepreneurial and economic activities of the rural population and the expansion of agricultural organizations from other areas of the region. Conclusions. It is necessary to intensify government incentives for small business in the agro-industrial complex in order to increase agricultural production. This will help meet the consumer demand of the population of the Far East of Russia.

Ballooning satellite populations in low Earth orbit portend changes for science and society

Technological advances and business incentives far outpace space regulations.