Coordinating Revenue Incentive Policies in the Caribbean

33 Pages Posted: 30 Oct 2020

See all articles by Ding Ding

Ding Ding

International Monetary Fund

Samira Kalla

affiliation not provided to SSRN

Manuel Rosales Torres

affiliation not provided to SSRN

Abdoul Karim Sidibé

affiliation not provided to SSRN

Date Written: August 2020

Abstract

The pervasive use of tax incentives is costly for the Caribbean countries, yet the benefits seem limited. Better policy coordination at the regional level is needed to help overcome the collective action problems and generate more revenue to support the much-needed infrastructure investment. Using the region's Citizenship-by-Investment (CBI) programs as an example, we also show that a price-quantity coordination mechanism can help achieve an efficient outcome with greater CBI incomes for member countries.

Keywords: Tax incentives, Corporate income tax, Foreign direct investment, Natural disasters, Competition, WP, tag0, revenue, ECCU country, price, country

JEL Classification: E62, H25, H87, H20, F21, Q54, G10

Suggested Citation

Ding, Ding and Kalla, Samira and Rosales Torres, Manuel and Sidibé, Abdoul Karim, Coordinating Revenue Incentive Policies in the Caribbean (August 2020). IMF Working Paper No. 20/176, Available at SSRN: https://ssrn.com/abstract=3721201

Ding Ding (Contact Author)

International Monetary Fund ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Samira Kalla

affiliation not provided to SSRN

No Address Available

Manuel Rosales Torres

affiliation not provided to SSRN

No Address Available

Abdoul Karim Sidibé

affiliation not provided to SSRN

No Address Available

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