{"title":"无形资产、企业税收抵免和制药厂","authors":"Meng-Ting Chen , Zadia M. Feliciano","doi":"10.1016/j.ememar.2024.101141","DOIUrl":null,"url":null,"abstract":"<div><p>Starting in the 1970s, the US government offered tax credits to US corporations doing business in Puerto Rico under Internal Revenue Code (IRC) Section 936. Firms in the pharmaceutical industry accounted for 50% of tax credits and 20% of employment. The tax credit program was eliminated in 2006, creating a natural experiment on the impact of eliminating corporate tax credits on establishments with high levels of intangible assets such as pharmaceuticals and medical devices. We use panel data on establishments 1990–2017 and a difference in difference methodology to measure the impact of the elimination of the tax credit program. Probability of survival of all manufacturing establishments declined from 90% three years before the elimination of IRC Section 936 to close to 50% three years after. Survival rates of all manufacturing establishments declined during the phaseout and elimination of the tax credit program. Pharmaceutical and medical devices establishments experienced an additional 3.5 to 6.2% decline. Approximately two thirds of the 33% decline in pharmaceutical and medical devices establishments in Puerto Rico can be attributed to the elimination of the tax credit program.</p></div>","PeriodicalId":47886,"journal":{"name":"Emerging Markets Review","volume":null,"pages":null},"PeriodicalIF":5.6000,"publicationDate":"2024-04-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":"{\"title\":\"Intangible assets, corporate tax credits and pharmaceutical establishments\",\"authors\":\"Meng-Ting Chen , Zadia M. Feliciano\",\"doi\":\"10.1016/j.ememar.2024.101141\",\"DOIUrl\":null,\"url\":null,\"abstract\":\"<div><p>Starting in the 1970s, the US government offered tax credits to US corporations doing business in Puerto Rico under Internal Revenue Code (IRC) Section 936. Firms in the pharmaceutical industry accounted for 50% of tax credits and 20% of employment. The tax credit program was eliminated in 2006, creating a natural experiment on the impact of eliminating corporate tax credits on establishments with high levels of intangible assets such as pharmaceuticals and medical devices. We use panel data on establishments 1990–2017 and a difference in difference methodology to measure the impact of the elimination of the tax credit program. Probability of survival of all manufacturing establishments declined from 90% three years before the elimination of IRC Section 936 to close to 50% three years after. Survival rates of all manufacturing establishments declined during the phaseout and elimination of the tax credit program. Pharmaceutical and medical devices establishments experienced an additional 3.5 to 6.2% decline. Approximately two thirds of the 33% decline in pharmaceutical and medical devices establishments in Puerto Rico can be attributed to the elimination of the tax credit program.</p></div>\",\"PeriodicalId\":47886,\"journal\":{\"name\":\"Emerging Markets Review\",\"volume\":null,\"pages\":null},\"PeriodicalIF\":5.6000,\"publicationDate\":\"2024-04-23\",\"publicationTypes\":\"Journal Article\",\"fieldsOfStudy\":null,\"isOpenAccess\":false,\"openAccessPdf\":\"\",\"citationCount\":\"0\",\"resultStr\":null,\"platform\":\"Semanticscholar\",\"paperid\":null,\"PeriodicalName\":\"Emerging Markets Review\",\"FirstCategoryId\":\"96\",\"ListUrlMain\":\"https://www.sciencedirect.com/science/article/pii/S1566014124000360\",\"RegionNum\":2,\"RegionCategory\":\"经济学\",\"ArticlePicture\":[],\"TitleCN\":null,\"AbstractTextCN\":null,\"PMCID\":null,\"EPubDate\":\"\",\"PubModel\":\"\",\"JCR\":\"Q1\",\"JCRName\":\"BUSINESS, FINANCE\",\"Score\":null,\"Total\":0}","platform":"Semanticscholar","paperid":null,"PeriodicalName":"Emerging Markets Review","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1566014124000360","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
Intangible assets, corporate tax credits and pharmaceutical establishments
Starting in the 1970s, the US government offered tax credits to US corporations doing business in Puerto Rico under Internal Revenue Code (IRC) Section 936. Firms in the pharmaceutical industry accounted for 50% of tax credits and 20% of employment. The tax credit program was eliminated in 2006, creating a natural experiment on the impact of eliminating corporate tax credits on establishments with high levels of intangible assets such as pharmaceuticals and medical devices. We use panel data on establishments 1990–2017 and a difference in difference methodology to measure the impact of the elimination of the tax credit program. Probability of survival of all manufacturing establishments declined from 90% three years before the elimination of IRC Section 936 to close to 50% three years after. Survival rates of all manufacturing establishments declined during the phaseout and elimination of the tax credit program. Pharmaceutical and medical devices establishments experienced an additional 3.5 to 6.2% decline. Approximately two thirds of the 33% decline in pharmaceutical and medical devices establishments in Puerto Rico can be attributed to the elimination of the tax credit program.
期刊介绍:
The intent of the editors is to consolidate Emerging Markets Review as the premier vehicle for publishing high impact empirical and theoretical studies in emerging markets finance. Preference will be given to comparative studies that take global and regional perspectives, detailed single country studies that address critical policy issues and have significant global and regional implications, and papers that address the interactions of national and international financial architecture. We especially welcome papers that take institutional as well as financial perspectives.