A1236
Title: Do fiscal policies affect the firms growth and performance? Evidence from a regional study in the Dominican republic
Authors: Marinella Boccia - University of Salerno (Italy) [presenting]
Alessandra Amendola - University of Salerno (Italy)
Gianluca Mele - World Bank (United States)
Luca Sensini - University of Salerno (Italy)
Abstract: The effect of corporate income tax (CIT) on business performance in the Dominican Republic is investigated, focusing attention on both the national and regional levels. The analysis is based on data provided by the local authorities of the Dominican Republic to the World Bank and includes administrative CIT declarations for the period 2006-2015 of over 18,000 companies distributed in 31 provinces. A propensity score matching method is carried out considering some opportunely selected financial indicators as proxies of firms performance. The overall results show that CIT incentives have a positive impact on growth and on most performance indicators, however pointing out some significant differences between the regions.
