Robust stimulus of private investment: Tax rate cut or investment subsidy?

2021 ◽  
Author(s):  
Yingjie Niu ◽  
Jinqiang Yang ◽  
Siqi Zhao
Keyword(s):  
Private Investment ◽  
Tax Rate ◽  
Investment Subsidy

Creditors will monitor Greek social spending closely

2018 ◽  
Keyword(s):  
Economic Reform ◽  
Private Investment ◽  
Social Spending ◽  
Public Funds ◽  
Content Type ◽  
Tax Rate ◽  
Preliminary Results ◽  
Policy Shift ◽  
State Investment

Subject EU budget surveillance. Significance The left-of-centre Syriza party, elected in 2015 on a platform of socio-economic reform but constrained during its first three years in office by its bailout terms, is finally trying to find the space to introduce long-promised policies. Impacts Preliminary results since August suggest the policy shift will not dent fiscal recovery targets. Putting public funds into the economy should promote growth, leading to a virtuous circle of more state investment and tax rate reductions. Banks will seek schemes turning debt into liquidity that could lead to stepped-up lending and increased private investment.

scholarly journals Determinants of private fixed investment in emerging country

2018 ◽  
Vol 8 (1) ◽  
pp. 6-13
Author(s):  
Itumeleng Mongale ◽  
Goitsemodimo Abel Molocwa ◽  
Ireen Choga
Keyword(s):  
South Africa ◽  
Exchange Rate ◽  
National Income ◽  
Private Investment ◽  
Positive Sign ◽  
Fixed Investment ◽  
Tax Rate ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run

The neoclassical and Keynesian theories regard private investment not only as a source of economic growth but also as a determinant of the potential extent of the national income. The aim of this research was to examine the determinants of private fixed investment in South Africa by employing the Johansen cointegration technique and the vector error correction model (VECM) analysis. Based on the literature survey it appears that the previous studies mainly focused on private investment in manufacturing and infrastructure sectors therefore this is envisaged to add knowledge to a body of economics literature in this area by focusing more on private fixed investment and its determinants in South Africa. The study concludes that for the period under investigation GDP has the positive sign as expected. This suggests that in the long run it impact positively on private fixed investment. The findings of the study also confirmed that tax rate is a complementary to private fixed investment. Similarly, the real exchange rate coefficient was negative as expected which suggests that the depreciation of the currency stimulates the growth of South Africa private fixed investment. It is obvious that even the best economic model cannot achieve the expected outcomes immediately but these results encourage the study to believe that the South African monetary policy on exchange rate complements private fixed investment. Therefore, the study proposes that both even though both growth and general tax rate are difficult to accomplish simultaneously, they should be used to promote the flow of private fixed investment in South Africa.

VAT Refund under Conditions of Zero Tax Rate

2007 ◽  
pp. 120-136
Author(s):  
R. Saakyan ◽  
I. Trunin
Keyword(s):  
Comparative Analysis ◽  
Point Of View ◽  
Tax Administration ◽  
Tax Rate ◽  
Export Sector ◽  
Tax Legislation

Main directions of tax legislation development are considered in the article from the point of view of relevancy of zero tax rate implementation and tax refund. Special emphasis is placed on the problem of tax refund delay that undermines the competitiveness of the export sector of economy. Comparative analysis of VAT refund mechanisms in different countries and Russia with respect to effectiveness of tax administration has allowed to formulate some hypotheses concerning relevant parameters of refund and test them with the help of various methods and models.

Tax maneuver in the oil industry: Provisional results and risks for further implementation

2020 ◽  
pp. 28-43
Author(s):  
A. S. Kaukin ◽  
E. М. Miller
Keyword(s):  
Oil Industry ◽  
Oil Products ◽  
Oil Refining ◽  
State Budget ◽  
Tax Rate ◽  
Oil Companies ◽  
Reform Plan ◽  
Alternative Variant ◽  
Calculation Results ◽  
The Cost

The paper analyzes the consequences of the abolition of the export duty on oil and oil products as a necessary step to stimulate energy efficiency of Russia’s economy and eliminate underdevelopment provoked by a long-term subsidizing of inefficient oil refining sector in Russia. The calculation results have shown that even taking into account several deviations from the planned scenarios of changing the parameters of tax regulation of the oil industry in 2014— 2019, the tax maneuver brought over 3.5 trillion rubles (in 2019 — 148 billion rubles) to the state budget in 2014—2017, mainly due to an increase in the base mineral extraction tax rate, and contributed to an increase in the depth of oil refining from 72% to 85%. In addition, the article analyzes possible risks associated with the current plan for reforming the taxation of the industry until 2024 and proposes an alternative that could level some of them. A comparative analysis of the effects of the tax maneuver under the current reform plan and the alternative variant suggests that the latter will allow to achieve a greater total budgetary effect in four years, reduce the cost of subsidizing domestic oil refining, increase the efficiency of Russian vertically integrated oil companies, and reduce the growth rate of oil products prices in the retail market.

Institutional environment creating for attracting investment into infrastructure: The cases of Russian regions

2019 ◽  
pp. 134-157 ◽  
Author(s):  
G. A. Borshchevskiy
Keyword(s):  
Institutional Environment ◽  
Private Investment ◽  
Infrastructure Development ◽  
Russian Regions ◽  
Development Indicators ◽  
The Russian Federation ◽  
The Behavior Of Government ◽  
The City ◽  
Nenets Autonomous ◽  
Practical Recommendations

The article examines the institutional process in a regional economy connected with the infrastructure development. We use the neoinstitutional approach to study factors that influence the behavior of government and business in their interaction in the economy. We also use statistical methods to analyze the dynamics of socio-economic development indicators of the subjects of the Russian Federation as well as the results of measures to attract private investment into infrastructure, including the PPP. We chose the city of Moscow and the Yamalo-Nenets Autonomous District as two empirical case studies which differ in economic and geographic conditions, but both demonstrate success in attracting private investment and implementing infrastructure projects. Our conclusions are consistent with a theory that asserts the primacy of institutional environment in relation to project implementation. We make also some practical recommendations for the development of the institutional environment which are acceptable for all regions solving similar problems of infrastructure development.

The Effect of Taxation and Corruption on Firm Growth: An Empirical Investigation for Vietnam

2016 ◽  
pp. 5-29
Author(s):  
Bich Le Thi Ngoc
Keyword(s):  
International Development ◽  
Firm Growth ◽  
Empirical Investigation ◽  
Manufacturing Firms ◽  
Economic Management ◽  
Tax Rate ◽  
Percentage Point Increase ◽  
Percentage Points ◽  
Point Increase ◽  
The Impact

The aim of this study is to analyze empirically the impact of taxation and corruption on the growth of manufacturing firms in Vietnam. The study employed pooled OLS estimation and then instrument variables with fixed effect for the panel data of 1377 firms in Vietnam from 2005 to 2011. These data were obtained from the survey of the Central Institute for Economic Management and the Danish International Development Agency. The results show that both taxation and corruption are negatively associated with firm growth measured by firm sales adjusted according to the GDP deflator. A one-percentage point increase in the bribery rate is linked with a reduction of 16,883 percentage points in firm revenue, over four and a half times bigger than the effect of a one-percentage point increase in the tax rate. From the findings of this research, the author recommends the Vietnam government to lessen taxation on firms and that there should be an urgent revolution in anti-corruption policies as well as bureaucratic improvement in Vietnam.

Trade Creation or Trade Diversion in ASEAN and ASEAN+6 FTAs: Trade Indicators Approach

2015 ◽  
pp. 25-41
Author(s):  
Anh Tu Thuy ◽  
Ngoc Le Minh
Keyword(s):  
Comparative Advantage ◽  
Wheat Gluten ◽  
Free Trade Area ◽  
Private Investment ◽  
Trade Diversion ◽  
Trade Creation ◽  
Public And Private ◽  
Trade Area ◽  
Economic Partnership ◽  
Regional Comprehensive Economic Partnership

This paper makes use of two trade indicators, Revealed Comparative Advantage (RCA) and Regional Orientation (RO), to evaluate the economic impacts of the ASEAN Free Trade Area (The) and the Regional Comprehensive Economic Partnership (RCEP) on Vietnamese commodities at the Harmonized System (HS) 2-digit level. Several sectors in which Vietnam has revealed a comparative advantage, has benefited from the AFTA, and would continue to enjoy trade creation from the RCEP, are: Cereals (10), Salt, sulphur, earth, stone, plaster, lime and cement (25), Rubber (40), Knitted or crocheted fabric (60), etc. More importantly, the result provides a list of commodities in which Vietnam has a comparative advantage and only experiences trade creation when participating in the RCEP. These are: Milling products, malt, starches, inulin, wheat gluten (11), Vegetable plaiting materials, vegetable products not elsewhere specified (14), Wood and articles of wood, wood charcoal (44), etc. Findings also show commodities in which Vietnam has a comparative advantage; but are not well positioned in the RCEP market yet, e.g. Cereal, flour, starch, milk preparations and products (19) and Manmade staple fibres (55). If sufficient investment decisions and marketing strategies are applied to these commodities, they will well penetrate the RCEP market and bring trade creation and welfare improvement to Vietnam. Public and private investment should consider the above-mentioned commodities as targets to leapfrog the benefits of RCEP.

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