The role of tax incentives in attracting investments and assessing their effectiveness
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https://doi.org/10.5281/zenodo.15510458##semicolon##
tax incentives, investment attraction, fiscal policy, economic development, foreign direct investment, tax expenditure, public finance, incentive effectiveness.##article.abstract##
This article examines the role of tax incentives in attracting investment and assesses their effectiveness in
promoting economic development. As global competition for capital intensifies, governments increasingly turn to tax
incentives to foster favorable investment environments. The study analyzes various forms of incentives such as tax
holidays, investment credits and reduced corporate tax rates, and evaluates their impact on foreign direct investment
(FDI) and domestic private sector growth. Drawing on case studies from both developed and developing economies,
the article highlights best practices as well as common challenges. It concludes with recommendations for designing
transparent, efficient and accountable tax incentive programs.
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