Developing countries continue to make widespread use of tax policy instruments to promote industrial and technological development. The actual effect of these instruments on business activity and government revenues, however, remains an open question. This volume takes an important first step in quantifying the investment incentives on business decisions related to production and investment. In addition, the book suggests the consequences of such incentives for government revenues. It will be of interest to students and scholars of public finance, industrial organization, and developmental economics.
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