THE EFFECTIVENESS OF INTRA-ISLAND INDUSTRIAL INCENTIVES IN PUERTO RICO
- 1 June 1974
- journal article
- Published by University of Chicago Press in National Tax Journal
- Vol. 27 (2) , 261-273
- https://doi.org/10.1086/ntj41861947
Abstract
This research compares the cost-effectiveness of three industrial incentives which have been offered to decentralize manufacturing employment growth in Puerto Rico. The effectiveness of the incentives is estimated with OLS regressions of the labor demand by export manufacturers. Incentive costs are calculated for an average Puerto Rican firm. With a series of qualifications, more jobs per dollar are attributed to government construction of standard industrial plants than to an extra seven (added to ten) years of corporate tax exemption.Keywords
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