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Investment Timing Problem Under Tax Allowances: The Case of Special Economic Zones

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Operations Research Proceedings 2007

Part of the book series: Operations Research Proceedings ((ORP,volume 2007))

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Abstract

Special economic zones (SEZ) are aimed at creating a favorable environment (in terms of taxation, custom rights and administrative burden) for businesses. Particularly, the SEZ are dedicated to the development of certain types of industries or to the revitalization of several economically depressed areas. The institutional role of SEZ in economic development is largely referenced in the literature (see for example [3]). Tax exemptions are one of the most used stimuli in order to attract investment in SEZ.

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References

  1. Arkin V, Slastnikov A (2004) Optimal stopping problem and investment models. In: Dynamic Stochastic Optimization. Lecture Notes in Economics and Mathematical Systems 532: 83–98

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  2. Dixit AK, Pindyck RS (1994) Investment under Uncertainty. Princeton University Press, Princeton

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  3. Litwack J, Qian Y (1998) Balanced or Unbalanced Development: Special Economic Zones as Catalysts for Transition. Journal of Comparative Economics 26(1): 1–25

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  4. McDonald R, Siegel D (1986) The value of waiting to invest. Quarterly Journal of Economics 101: 707–727

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Arkin, V., Slastnikov, A., Arkina, S. (2008). Investment Timing Problem Under Tax Allowances: The Case of Special Economic Zones. In: Kalcsics, J., Nickel, S. (eds) Operations Research Proceedings 2007. Operations Research Proceedings, vol 2007. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-77903-2_27

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