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Chai, Jingqing.

Tax Concessions and Foreign Direct Investment in the Eastern Caribbean Currency Union Jingqing Chai. [electronic resource] / Jingqing Chai. - Washington, D.C. : International Monetary Fund, 2008. - 1 online resource (33 p.) - IMF Working Papers; Working Paper ; No. 08/257 . - IMF Working Papers; Working Paper ; No. 08/257 .

Tax concessions have been employed as a central component of the development strategy in the small island states comprising the Eastern Caribbean Currency Union. This paper compares the costs of concessions in terms of revenues forgone with the benefits in terms of increased foreign direct investment. The costs are very large, while the benefits appear to be marginal at best. Forgone tax revenues range between 9 1/2 and 16 percent of GDP per year, whereas total foreign direct investment does not appear to depend on concessions. A rethinking of the use of concessions in the region is needed urgently.

ISBN: 1451871155 : 18.00 USD

ISSN: 1018-5941

Standard No.: 10.5089/9781451871159.001 doi

Subjects--Topical Terms:
Concessions
Direct Investment
FDI
Incentives
Tax Incentives

Subjects--Geographic Terms:
Antigua and Barbuda
Saint Vincent and the Grenadines