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Mariya Brussevich

-level effects of SEZ entry in Cambodia ( World Bank and Asian Development Bank, 2014 ; Warr and Menon, 2016 ). These studies find that SEZs have attracted significant levels of FDI and boosted exports as firms in SEZs are predominantly foreign and sell more than two thirds of their products outside of Cambodia. Nevertheless, these studies find that SEZ firms are less likely to invest in R&D due to reliance on technologies from the foreign parent firms and are less likely to source inputs from local suppliers, suggesting that knowledge and technology spillovers from SEZs in

Mariya Brussevich
This study examines the socio-economic impact of special economic zones (SEZs) in Cambodia---a prominent place-based policy established in 2005. The paper employs a database on existing and future SEZs in Cambodia with matched household surveys at the district level and documents stylized facts on SEZs in a low-income country setting. To identify causal effects of the SEZ program, the paper (i) constructs an alternative control group including future SEZ program participants and districts adjacent to SEZ hosts; and (ii) employs a propensity score weighting technique. The study finds that entry of SEZs disproportionately benefits female workers and leads to a decline of income inequality at a district level. However, the findings also suggest that land values in SEZ districts tend to rise while wage levels remain largely unchanged relative to other districts. In addition, the paper tests for socio-economic spillovers to surrounding areas and for agglomeration effects associated with clusters of multiple SEZs.
Ms. Laure Redifer, Mr. Emre Alper, Mr. Neil Meads, Tunc Gursoy, Ms. Monique Newiak, Mr. Alun H. Thomas, and Samson Kwalingana

( Steenbergen and Javorick 2017 ), with the study’s recommendations integrated into Rwanda’s updated SEZ policy in 2017. 5 An initial proposal for a fat 15 percent corporate income tax rate (instead of the normal 30 percent rate) was never implemented. Instead, a number of non-SEZ specific tax incentives have been offered by the authorities, although the proportion of SEZ firms receiving these incentives has been found to be considerably higher than for non-SEZ firms suggesting potential indirect benefits, including from greater awareness of specific tax incentives as a

Mr. Nigel A Chalk
The Philippines is faced with a policy dilemma in the area of corporate taxation. On the one hand, the country has, over the past few years, witnessed a decline in revenue as a share of output. On the other, it is operating in an increasingly competitive regional market for foreign direct investment. In order to remain competitive, the Philippines offers a broad array of fiscal incentives to entice inward investment and pursue the country's development goals. This paper looks at the fiscal incentives available in the Philippines, compares them with those available in the ASEAN region, and with the evidence on the efficacy of tax incentives in a global context. The paper provides some broad conclusions on the use of the various forms of tax incentives in the Philippines and on their administration.
Mr. Nigel A Chalk

revenue foregone by the government in operating the SEZs. Also, there is an uneven application of the incentives themselves. For example, some SEZ firms paying the 5 percent gross income tax were also charged local taxes contrary to the legislation while other firms have chosen to pay the 32 percent corporate income tax instead of the 5 percent gross income tax (since it results in a lower tax liability for the firm). 33 Appendix II Appendix II: Laws Used To Claim Fiscal Incentives In 1999 34 Executive Order 63 Amendments to

Ms. Laure Redifer, Mr. Emre Alper, Mr. Neil Meads, Tunc Gursoy, Ms. Monique Newiak, Mr. Alun H. Thomas, and Samson Kwalingana
This paper explores some of the key factors behind Rwanda key successes, including unique institution-building that emphasized governance and ownership; aid-fueled and government-led strategic investment in people, infrastructure, and high-yield economic activity; re-establishment and expansion of a domestic tax base; policies to reduce aid dependency by attracting private investment and bolstering exports; and a purposeful strategy to harness the economic power of gender inclusion.
International Monetary Fund. Western Hemisphere Dept.

and streamlined procedures). However, caution is warranted in offering tax incentives for firms within the SEZs, particularly since firms in these zones will also be active in the domestic economy which could undermine the tax base as the line between SEZ and non-SEZ firms becomes blurred. The authorities agreed to carefully limit the types of firms that can locate in an SEZ, to limit tax incentives, and prevent ministerial discretion in the offering of any such incentives (a new structural benchmark is proposed on the design of the SEZs). 15. Better public

International Monetary Fund. Western Hemisphere Dept.
This paper discusses Jamaica’s Eighth Review Under the Arrangement Under the Extended Fund Facility (ECF) and Request for Waiver for the Nonobservance of Performance Criterion (PCs) and Modification of PCs. Jamaica’s economic performance under the authorities’ economic program is on track and has remained strong. All PCs for end-March 2015 were met, with the exception of the central government primary balance criterion, which was narrowly missed. Structural reforms have advanced broadly in line with the program. The IMF staff supports the authorities’ request for completion of the eighth review of the arrangement under the ECF.