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J Tax Res 2025, 0 - : 191-228 |
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Afsharirad M, Izadi S H, Bahraminia E, Mamipour S, Sayadi M. he Impact of Tax Exemptions on the Foreign Direct Investment in Free Trade and Special Economic Zones (Dynamic Panel Data Approach). J Tax Res 2025;
URL: http://taxjournal.ir/article-1-2529-en.html
URL: http://taxjournal.ir/article-1-2529-en.html
1- Kharazmi University, Tehran, Iran , m.feshari@khu.ac.ir
2- Payame-Noor University, Yad, Iran
3- Kharazmi University, Tehran, Iran
2- Payame-Noor University, Yad, Iran
3- Kharazmi University, Tehran, Iran
Abstract: (3 Views)
Investigating the effect of tax exemptions on the performance variables of free trade and special economic zones in the international trade literature has been considered in recent years and has occupied an important part of theoretical and empirical studies. Hence, the main objective of this paper is to investigate the effect of tax exemptions along with other effective explanatory variables such as logistics performance index, population, deprivation coefficient, and distance from the nearest airport on foreign direct investment in 7 free trade zones (FTZ) and 31 special economic zones (SEZs) during the years 2001-2022. For achieving this, the econometric model has been estimated by applying dynamic panel data approach and generalized method of moment method during the above period. The results of the model estimation indicated that a positive but insignificant effect of tax exemptions on foreign direct investment in these areas in both dynamic and static models such as fixed effects. So, the robustness of results have been confirmed. Moreover, the variables of logistics performance index, population, and deprivation coefficient have a positive effect, and distance from the nearest airport has a negative and significant impact on the foreign direct investment in free trade and special economic zones. Based on the research findings, it is suggested that economic and tax policymakers provide the basis for the entry of domestic and foreign companies and the attraction of foreign direct investment by improving the logistics performance index, thereby facilitating the promotion of production and growth in these regions.
Keywords: Tax Exemptions, Free Trade and Special Economic Zones, Foreign Direct Investment, Dynamic Panel Data Approach
Type of Study: Research |
Subject:
Economic
Received: 2025/08/13 | Accepted: 2025/09/1 | Published: 2025/09/1
Received: 2025/08/13 | Accepted: 2025/09/1 | Published: 2025/09/1
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