Investment and Taxation in Germany - Evidence from Firm-Level Panel Data Discussion
نویسنده
چکیده
Several different factors have come together to make the topic of this conference, “Investing Today for the World of Tomorrow,” a timely one for any developed economy, and particularly for Germany. Among them are increased global competition, a seemingly rapid pace of technological change, especially in information-based and network industries, and, in Germany, the need to absorb and restructure industrial firms in the former DDR. All of these factors imply an accelerated need for investments both to replace aging plant and equipment and in order to redirect activities from those subject to competition from regions with lower labor costs to those that are highly knowledge-intensive and more likely to support the relatively high wages that are the norm in developed countries. Fear that industry will not undertake the investment necessary to provide adequate job growth has frequently led governments to “subsidize” investment spending via the tax code.
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