Tax Rate Cut in Thailand Sparks Surge in Firm Investment Boosting Economy
Firms in Thailand increased their investment after a corporate tax rate cut in 2012-13. The study used a method called matched difference-in-difference to analyze the impact of the tax cut. The results show that the tax cut led to a significant boost in investment. The study also found that local and foreign firms responded differently to the tax cut, and factors like policy uncertainty and market competition played a role in how firms invested.