Investment tax credits are widely practiced by a number of governments in African countries, as a way
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Question:
- Investment tax credits are widely practiced by a number of governments in African countries, as a way of attracting foreign direct investment. A number of civil society organizations argue that there is limited evidence on the effectiveness of these policies in promoting firm investment, employment, or growth and basically do not support the application of investment tax credit.
Required:
Weigh in on the argument on investment tax credit using the notion of own and cross-price elasticity as evidence in support of your stated position. Your argument shall not exceed 250 words.
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