Tax incentives, private investment and employment: evidence from an ecuadorian reform

This paper estimates the effect of the Organic Law for Productive Development, Attraction of Investments, Generation of Employment and Stability and Fiscal Balance on new investment and employment applied in August 2018 in Ecuador. Using event study designs and difference-in- differences models, I f...

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Detalles Bibliográficos
Autor: Camino Mogro, Segundo
Tipo de recurso: artículo
Fecha de publicación:2023
País:España
Institución:Universidad Complutense de Madrid (UCM)
Repositorio:Docta Complutense
Idioma:inglés
OAI Identifier:oai:docta.ucm.es:20.500.14352/103470
Acceso en línea:https://hdl.handle.net/20.500.14352/103470
Access Level:acceso abierto
Palabra clave:H25
H32
H54
developing country
Ecuador
employment
investment
tax incentives
Economía pública
5301.01 Política Fiscal y Deuda Pública
53 Ciencias Económicas
Descripción
Sumario:This paper estimates the effect of the Organic Law for Productive Development, Attraction of Investments, Generation of Employment and Stability and Fiscal Balance on new investment and employment applied in August 2018 in Ecuador. Using event study designs and difference-in- differences models, I find that the policy implementation does not have an effect on the attraction of new investments or the creation of new employment for prioritised sectors compared to non-prioritised sectors. This matters from a policy perspective in a country with few private investments and a high share of people out of formal employment.