{"type":"script","doc_desc":{"producers":[{"name":"Reproducibility WBG","abbr":"DIME","affiliation":"World Bank - Development Impact Department","role":"Verification and preparation of metadata"}],"prod_date":"2024-12-13","version":"1"},"project_desc":{"authoring_entity":[{"name":"Jawhar Abidi","affiliation":"World Bank ","email":"jabidi@worldbank.org"},{"name":"Massimiliano Cali","affiliation":"World Bank","email":"mcali@worldbank.org"},{"name":"Giorgio Presidente","affiliation":"Bocconi University","email":"giorgio.presidente@unibocconi.it"},{"name":"Thiago Scot","affiliation":"World Bank","email":"tscot@worldbank.org"}],"output":[{"type":"Working Paper","title":"The Elusive Impact of Corporate Tax Incentives","authors":"Massimiliano Cali, Giorgio Presidente, Thiago Scot","description":"Policy Research Working Paper (PRWP)"}],"software":[{"name":"Stata","version":"18 MP"}],"title_statement":{"idno":"RR_TUN_2024_201","title":"Reproducibility package for The Elusive Impact of Corporate Tax Incentives"},"acknowledgment_statement":"\n","production_date":"2024-12","abstract":"Despite the large fiscal footprint of corporate tax incentives, limited causal evidence exists on their impact on economic outcomes. This paper helps fill this gap by exploiting the phasing out of a large income tax exemption scheme for export oriented firms in Tunisia, which raised their tax rate from 0% to 10%. Using microdata on the universe of registered Tunisian firms, the analysis compares economic outcomes of those firms against the other firms before and after the rate hike. The results suggest that the reform led to a substantial decline in the entry of new firms in the sector previously benefiting from the incentives, which drove down the number of firms in that sector. However, the reduced entry did not translate into any meaningful economic effects in terms of employment, revenue or the wage bill. That is mainly because the reform did not impact the activities of incumbent firms, which account for the bulk of economic activity in Tunisia. The findings are robust to addressing various threats to the empirical identification and they confirm emerging evidence casting doubt on the importance of tax incentives to attract investments relative to other factors in an economy.\n","geographic_units":[{"name":"Tunisia","code":"TUN","type":"Country"}],"keywords":[{"name":"Tax Incentives, "},{"name":"Corporate Income Tax"},{"name":"Export-oriented incentives"}],"topics":[{"id":"H25","parent_id":"H2","vocabulary":"Journal of Economic Literature (JEL)","uri":" https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","name":"Business Taxes and Subsidies"},{"id":"H32","parent_id":"H3","vocabulary":"Journal of Economic Literature (JEL)","uri":" https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","name":"Firm"}],"language":[{"name":"English","code":"EN"}],"data_statement":"Some data is restricted and has not been included in the reproducibility package. For more details, please refer to the README file.","scripts":[{"file_name":"RR_TUN_2024_201.zip","zip_package":"RR_TUN_2024_201.zip","title":"Reproducibility package for The Elusive Impact of Corporate Tax Incentives","date":"2024-12","dependencies":"All dependencies are stored in the ado folder. ","notes":"Computational reproducibility verified by the Development Impact (DIME) Analytics team, World Bank."}],"disclaimer":"The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development\/the World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.","license":[{"name":"Modified BSD3","uri":"https:\/\/opensource.org\/license\/bsd-3-clause\/"}],"contacts":[{"affiliation":"World Bank","name":"Thiago Scot","email":"tscot@worldbank.org"},{"name":"Reproducibility WBG","affiliation":"World Bank","email":"reproducibility@worldbank.org"}],"repository_uri":[{"name":"Reproducible Research Repository (World Bank)","uri":"https:\/\/reproducibility.worldbank.org"}],"technology_requirements":"~ 20 minutes","reproduction_instructions":"Users will not be able to fully reproduce the results of the study as most of the data is restricted and stored in a cold room within the Tunisian government. \n- The reproducibility package contains partial data and will not execute fully without access to the complete dataset. However, it includes the code, log files, and outputs to demonstrate the process followed by the authors to achieve their findings.  \n- A synthetic dataset (`data\/raw\/dw2022v.dta`) is included in the package. This dataset replicates the structure of the principal data frame used in the study, allowing users to:\n  - Understand the data structure.\n  - Partially run the code (scripts one to three can be fully executed after changing the path in the main do file). Note that the results of the paper cannot be reproduced with this synthetic dataset.  \n- For further details, refer to the `README` file and the data section.  \n","technology_environment":"The paper exhibits were reproduced, utilizing two computers:  \n1. **Government's Computer**:  \n   - OS: Windows 11 Enterprise  \n   - Processor: 13th Gen Intel(R) Core(TM) i7-1365U 1.80 GHz  \n   - Memory Available: 31.3 GB usable  \n   - Software Version: Stata version 14\n2. **Replicators' Computer**:  \n   - OS: Windows 11 Pro  \n   - Processor: Intel(R) Core(TM) i7-1165G7 CPU @ 2.80 GHz  \n   - Memory Available: 16.0 GB usable  \n   - Software Version: Stata version 18 MP","datasets":[{"note":"Source: Tunisian National Institute of Statistics (INS). Combined anonymized administrative data based on Registre National des Entreprises (RNE). It includes data on firm age, location, legal form, and economic activity merged with tax returns (declared revenue before tax, profits, and exports), Social Security records (yearly employment and wage bill), and customs data (value and quantity of exports and imports).\nLocated at: data\/raw\/dw2022v.dta. Data is confidential and restricted. It is owned by the Tunisian National Institute of Statistics (INS) and was made available exclusively for this research project under collaboration agreements between the corresponding author and the government agency. The data was always processed in a cold room within the Institute. For more details about data access and details please see README file. ","access_type":"Restricted and not included with the package","name":"Administrative Records on Tunisian Firms"},{"name":"UN Comtrade","note":"Source: United Nations, consulted through World Integrated Trade Dataset.\nLocated at: data\/raw\/EU_TN_WLD.dta. Contains EU Imports from Tunisia as well as from the world from 2008 to 2020. For more details about data access and details please see README file. \nTo access the data users should go to the following link, log in, perform an advanced query on COMTRADE data, selecting the total imports from the European Union from the World (EU_WLD variable in the code) and from Tunisia (EU_TUN), for the period 2008-2020, by NAT code.\n","uri":"https:\/\/wits.worldbank.org\/","access_type":"Public but does now allow republication","license_uri":"https:\/\/comtrade.un.org\/licenseagreement.html","license":"United Nations On-Line Usage Agreement"},{"note":"Source: International Monetary Fund (IMF), International Financial Statistics.  \nLocated at: data\/raw\/Naccounts_tunis.dta. \nVariables included are: consumption, GDP, government consumption and fixed capital formation from 2009 to 2018. For more details about data access and details please see README file. \n","name":"International Financial Statistics","uri":"https:\/\/data.imf.org\/?sk=4c514d48-b6ba-49ed-8ab9-52b0c1a0179b&sid=1409151240976","access_type":"Public and included in the package","license_uri":"https:\/\/www.imf.org\/en\/About\/copyright-and-terms"},{"name":"Euro\/ECU exchange rates - annual data","note":"Source: Eurostat. \nLocated at: data\/raw\/Naccounts_tunis.dta.\nVariable: exchange rate from 2009 to 2018.\nFor more details about data access and details please see README file. ","access_type":"Public and included in the package","uri":"https:\/\/ec.europa.eu\/eurostat\/databrowser\/view\/ert_bil_eur_a__custom_12132339\/default\/table","license_uri":"https:\/\/creativecommons.org\/licenses\/by\/4.0\/","license":"Creative Commons Attribution 4.0 International License (CC BY 4.0)"}]},"tags":[{"tag":"DOI"},{"tag":"Open code"},{"tag":"Restricted data"}],"schematype":"script"}