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dc.titleCorporate Tax Stimulus and Investment in Colombia
dc.contributor.authorGalindo, Arturo
dc.contributor.authorMeléndez Arjona, Marcela
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageColombia
dc.date.available2011-02-07T00:00:00
dc.date.issue2010-04-28T00:00:00
dc.description.abstractThis paper uses a yearly dataset of plant-level investment in Colombian firms during the period 1997 to 2007 to assess the impact of a tax incentive for firms that invest in fixed assets implemented in 2004. A positive and statistically significant correlation is found between the boom observed in investment and the adoption of the tax policy. However, the correlation vanishes when year-specific effects are controlled for. This result is robust to changes in the empirical specification, changes in estimation techniques, the inclusion of additional controls, and changes in the data set, among other tests. Overall, it is concluded that the tax stimulus analyzed was ineffective in promoting investment in Colombia.
dc.identifier.doihttp://dx.doi.org/10.18235/0010933
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Corporate-Tax-Stimulus-and-Investment-in-Colombia.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectInvestment
dc.subjectFiscal Policy
dc.subject.jelcodeE22 - Investment • Capital • Intangible Capital • Capacity
dc.subject.jelcodeH2 - Taxation, Subsidies, and Revenue
dc.subject.jelcodeH20 - Taxation, Subsidies, and Revenue: General
dc.subject.jelcodeH21 - Efficiency • Optimal Taxation
dc.subject.jelcodeH22 - Incidence
dc.subject.jelcodeH23 - Externalities • Redistributive Effects • Environmental Taxes and Subsidies
dc.subject.jelcodeH24 - Personal Income and Other Nonbusiness Taxes and Subsidies
dc.subject.jelcodeH25 - Business Taxes and Subsidies
dc.subject.jelcodeH26 - Tax Evasion and Avoidance
dc.subject.jelcodeH27 - Other Sources of Revenue
dc.subject.jelcodeH29 - Taxation, Subsidies, and Revenue: Other
dc.subject.jelcodeO54 - Latin America • Caribbean
dc.subject.keywordsIDB-WP-173
dc.typeWorking Papers
idb.identifier.pubnumberWorking Papers
idb.operationRG-K1113
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