Evaluating the Large-Scale Mining Fiscal Regime in the Philippines

2019 ◽  
Vol 40 (1-2) ◽  
pp. 32-68
Author(s):  
Cielo Magno ◽  
Ricardo Rafael S. Guzman
Keyword(s):  
Large Scale ◽  
Private Investment ◽  
The Philippines ◽  
Firm Level ◽  
Unique Challenge ◽  
Resource Rent ◽  
Level Data ◽  
Tax Regimes ◽  
Fiscal Regime ◽  
Tax Payments

Abstract Economies that derive substantial government revenues from natural resources face the unique challenge of implementing fiscal regimes that deliver a fair share of rents without discouraging private investment in extractive sectors. However, designing progressive and non-distortionary fiscal tools requires an evaluation of the current fiscal regime and the extent to which it captures the resource rent – the surplus return above the value of capital, labor, and opportunity costs incurred to exploit the resource. To evaluate the efficiency of the Philippines’ fiscal regime, we compare the resource rent to government revenues from mining activity. Then, we estimate the effective tax rates under the current fiscal regime and other combinations of fiscal tools. First, we look at aggregated tax payments of all large-scale mining companies over a ten-year period and compare them with the estimated resource rent. Second, we model the different tax regimes using firm-level data from a nickel mine. We propose a fiscal regime for the mining sector in the Philippines that is least distortionary while appropriate given the country’s regulatory context and administrative capacity.

scholarly journals Health Insurance Coverage and Firm Performance: Evidence Using Firm Level Data from Vietnam

2018 ◽  
Vol 18 (4) ◽  
Author(s):  
Hiroyuki Yamada ◽  
Tien Manh Vu
Keyword(s):  
Health Insurance ◽  
Firm Performance ◽  
Large Scale ◽  
Manufacturing Sector ◽  
Insurance Coverage ◽  
Health Insurance Coverage ◽  
Positive Health ◽  
Firm Level ◽  
Positive Effects ◽  
Level Data

Abstract In literature, there is limited direct evidence regarding the effect of health insurance coverage on firm performance and worker productivity. We study the impacts of health insurance on medium- and large-scale domestic private firms’ performance and productivity in Vietnam, using a large firm level census dataset. We find statistically, but suggestive, positive health insurance effects on both aggregate profit and profit per worker for both complying and non-complying firms when using the full sample. We further restrict the sample to specific industries. The positive health insurance effects could exist for both complying and non-complying firms in the heavy manufacturing and construction sector, while such positive effects could be only significant for complying firms in the wholesale/retail sectors. We could not find any evidence of positive health insurance effects in the light manufacturing sector. These results imply that the impacts of health insurance could be industry specific.

scholarly journals Political Risk Insurance: A New Firm-level Data Set

2019 ◽  
Vol 64 (5) ◽  
pp. 987-1006
Author(s):  
Vincent Arel-Bundock ◽  
Clint Peinhardt ◽  
Amy Pond
Keyword(s):  
Political Risk ◽  
Private Investment ◽  
Foreign Firms ◽  
Firm Level ◽  
Data Set ◽  
Insurance Contracts ◽  
Indirect Measures ◽  
Level Data ◽  
New Firm ◽  
Risk Insurance

When do governments impose costs on foreign firms? Many studies of foreign direct investment focus on incentives for government expropriation, but scholars are often forced to rely on indirect measures of expropriation to conduct empirical analyses. This article introduces a data set which includes information on over 5,000 political risk insurance contracts issued by the US Overseas Private Investment Corporation since 1961, and on all the claims filed by investors under these contracts. These detailed insurance data allow us to study the determinants of foreign investors’ losses from a variety of sources, including expropriation, inconvertibility, and violent conflict. To illustrate the benefits of these data for hypothesis testing, we adopt a comprehensive empirical approach and explore both shared and distinct causes across risk categories.

scholarly journals Who suffers and how much from corruption? Evidence from firm-level data

2021 ◽  
Author(s):  
Andrzej Cieślik ◽  
Łukasz Goczek
Keyword(s):  
Logit Model ◽  
Firm Level ◽  
Empirical Results ◽  
Doing Business ◽  
Level Data ◽  
Firm Level Data ◽  
Administrative Procedures ◽  
Determinants Of Corruption ◽  
Tax Payments ◽  
Fractional Logit Model

AbstractIn this article, we study firm-level determinants of corruption using a sample of 164,000 companies from 144 countries for the 2005–2020 period. We analyze two variables related to corruption: the perception of corruption as an obstacle to doing business using an ordinal logit model and actual bribe tax payments using a fractional logit model. Controlling for other factors, both sets of our empirical results show that the extent of corruption is related to the time spent dealing with regulations and inspections. We argue that firms which spend more time dealing with administrative procedures have a greater perception of corruption and are forced to make significantly higher bribe payments. Therefore, in a successful fight against corruption, it is essential to simplify administrative procedures by reducing their number and eliminating direct contacts between firms and officials.

scholarly journals Chinese Corporate Debt and Credit Misallocation

2019 ◽  
Vol 18 (1) ◽  
pp. 1-34 ◽  
Author(s):  
Ninghua Zhong ◽  
Mi Xie ◽  
Zhikuo Liu
Keyword(s):  
Large Scale ◽  
Private Firms ◽  
Firm Characteristics ◽  
Aggregate Level ◽  
Huge Amount ◽  
Firm Level ◽  
Leverage Ratio ◽  
State Sector ◽  
Listed Firms ◽  
Level Data

This paper analyzes various data, especially that of 4 million Chinese manufacturing company samples during the period of 1998 to 2013, to present detailed evidence regarding two questions of China's leverage issue. First, where is the leverage? We find that within the 16-year period, most sample firms have been significantly deleveraged, with the average leverage ratio declining from 65 percent in 1998 to 51 percent in 2013. In contrast, only several thousand companies have significantly leveraged, mostly large-scale, state-owned, listed firms. Second, has the change of leverage been supported by the firms’ fundamentals? We find that for private firms, changes of firm characteristics are consistent with their leverage changes, whereas firm-level factors can hardly explain the leverage of state-owned enterprises. We provide further evidence from aggregate-level data, which suggest that the huge amount of credit being allocated to the state sector is the reason for the declining credit efficiency in China.

Calling the cavalry: firm-level investment in the face of decentralized expropriation

2020 ◽  
Vol 16 (4) ◽  
pp. 503-518 ◽  
Author(s):  
Israel Marques ◽  
Irina Levina ◽  
Anton Kazun ◽  
Andrei Yakovlev
Keyword(s):  
Large Scale ◽  
The State ◽  
Negative Consequences ◽  
Central State ◽  
Firm Level ◽  
Business Association ◽  
Level Data ◽  
The Face ◽  
Local Officials ◽  
Using Data

AbstractWhat characteristics of firms give them the confidence to invest in settings rife with expropriation by local officials? Empirically, firms in the developing world often face the threat of expropriation from local agents of the state rather than a centralized autocrat. Because policing local officials is costly, the state cannot easily credibly commit to doing so. This has negative consequences for investment. We argue that one solution is to allow firms to approach the state directly to ask for intervention. Not all firms are equally able to successfully get the attention of the state, however, so this mechanism only works for some. We develop an argument about the firm-level characteristics – large-scale employment, political connections, foreign ownership, and business association membership – that should make the central state more attentive to calls for help. Because firm with these characteristics are more likely to secure intervention against predatory bureaucrats, the latter are less likely to try to expropriate them. These firms' investment decisions should be less sensitive to local expropriation than other firms. We test this argument using data on cases of decentralized expropriation across Russia's regions and firm-level data from a cross-regional, large scale survey of Russian firms.

ECONOMIC IMPACT ASSESSMENT OF PUBLIC–PRIVATE MATCHING FUND PROGRAMS USING FIRM-LEVEL DATA

2015 ◽  
Vol 60 (04) ◽  
pp. 1550060 ◽  
Author(s):  
YOUNGKYU KIM ◽  
INHA OH ◽  
JEONG-DONG LEE
Keyword(s):  
Business Performance ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Private Investment ◽  
External Financing ◽  
Firm Level ◽  
Economic Impact Assessment ◽  
Level Data ◽  
Fixed Assets ◽  
Medium Enterprises

In the intermediate goods industry, largely made up of small and medium enterprises (SMEs), a government can use a matching fund to execute policies that, for example, provide funds to promote and support firms' innovative activities. This study performs an empirical analysis to investigate the additional effects when a government uses a matching fund in this way and, in particular, to analyze the growth of firms. Methodologically, to deal with the selectivity issue, we adopt a propensity score matching (PSM) estimator. We also investigate the performance of the matching fund according to changes in private shares. Our findings show that supported firms invested larger amounts in R&D and procured external financing through an overall improvement in their level of reliability. However, the results also show that this was not connected to further improvements in business performance. Moreover, although our results show some positive impact on assets and R&D expenditure from private investment in the matching fund, the relationship between sales and fixed assets was non-significant.

China’s Specialization in Innovative Manufacturing

2021 ◽  
pp. 111-150
Author(s):  
Jonas Nahm
Keyword(s):  
Mass Production ◽  
Large Scale ◽  
Central Government ◽  
Local Level ◽  
Scale Up ◽  
Firm Level ◽  
Industrial Upgrading ◽  
Collaborative Advantage ◽  
Level Data

Chapter 5 turns to the case of China. It shows that wind and solar firms—often in outright defiance of central government goals—relied on local-level support for large-scale manufacturing in the process of industrial upgrading. Contrary to the ambitions of policymakers seeking to build autonomous domestic industries, these capabilities were brought to bear on product development in collaboration with global partners. The chapter uses firm-level data to explain the establishment of capabilities in innovative manufacturing—research and development skills focused on the commercialization and rapid scale-up to mass production. The second half of the chapter examines the role of collaborative advantage in allowing firms to choose their specialization in innovative manufacturing. It shows how collaborative advantage enabled renewable energy firms to build on local government institutions for mass production that diverged sharply from central government goals.

Introducing Chinese private enterprise survey: points and prospects

2019 ◽  
Vol 10 (4) ◽  
pp. 501-525 ◽  
Author(s):  
Guangjin Chen ◽  
Peng Lu ◽  
Zeyan Lin ◽  
Na Song
Keyword(s):  
Large Scale ◽  
Private Enterprise ◽  
Business Environment ◽  
Main Body ◽  
Firm Level ◽  
Chinese Enterprises ◽  
Content Type ◽  
Level Data ◽  
Future Data ◽  
Enterprise Survey

Purpose This paper aims to introduce the history and major achievement of the Chinese private enterprise survey (CPES), which is one of the most enduring large-scale nationwide sample surveys in China, providing important micro firm-level data for understanding and studying the development of Chinese enterprises and entrepreneurs over the past 26 years. Design/methodology/approach The main body of this paper is based on a bibliometric analysis of all literature using CPES until 2017. Findings This paper discusses problems that users may encounter during data mining. By doing so, it can assist other researchers to get a better understanding of what has been done (e.g. journals, topics, scholars and institutions) and do their research in a more targeted way. Research limitations/implications As members of the survey project team, the authors also take a prospect of the future data design and use, as well as offer some suggestions about how to use the CPES data to improve high-quality development and business environment evaluation in China. Originality/value This paper is the first to provide an overall picture of academic papers in China and abroad that have used the CPES data.

Implicit Taxes Amid Race to the Bottom in a Global Tax Game

2020 ◽  
Vol 27 (2) ◽  
pp. 42
Author(s):  
Igor Semenenko ◽  
Junwook Yoo ◽  
Parporn Akathaporn
Keyword(s):  
Capital Mobility ◽  
Tax Rates ◽  
Corporate Tax ◽  
Firm Level ◽  
Race To The Bottom ◽  
Tax Subsidy ◽  
Tax Subsidies ◽  
Level Data ◽  
Tax Returns ◽  
Tax Hypothesis

Growing tax competition among national governments in the presence of capital mobility distorts equilibrium in the international corporate tax market. This paper is related to the literature that examines impact of international tax policies on corporate accounting statements. Employing international firm-level data, this study revisits the race-to-the-bottom hypothesis and documents that tax exemptions lowering effective tax rates relative to statutory rates increase pre-tax returns. This finding directly contradicts the implicit tax hypothesis documented by Wilkie (1992), who provided empirical evidence on inverse relationship between pre-tax return and tax subsidy. We also find evidences that relative importance of permanent versus timing component depends on the geography and that decline in corporate tax rates reduces impact of tax subsidies on profitability. Our findings suggest that tax subsidies play a different role than in 1968-1985, which was examined by Wilkie (1992). These results are consistent with the race-to-the-bottom hypothesis and income shifting explanation

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