📄 Abstract
This study develops an empirical framework to evaluate the structural and causal impacts of targeted fiscal incentive instruments—specifically corporate tax credits, accelerated capital depreciation allowances, and interest rate subsidies—on the expansion and modernization of sustainable tourism infrastructure. Addressing potential endogeneity, unobserved cross-sectional heterogeneity, and dynamic persistence, the empirical inquiry employs a two-step System Generalized Method of Moments (System GMM) and Panel Autoregressive Distributed Lag (P-ARDL) estimation framework applied to a balanced panel dataset spanning 2010–2024. The econometric findings demonstrate a statistically robust, non-linear relationship between fiscal stimulus measures and private capital allocation toward green hospitality assets and low-carbon transport logistics. Specifically, targeted interest rate subsidies exhibit a potent short-run multiplier effect (β=0.342,p<0.01), whereas structural tax concessions yield significant long-run private investment elasticity (β=0.518,p<0.001) only after regional institutional quality and infrastructural absorption capacity surpass critical threshold levels. Furthermore, indiscriminate tax exemptions are found to induce deadweight economic loss and market distortion without generating commensurate green capital stock. These findings bridge a critical gap in public finance and regional tourism economics by establishing an optimal, performance-contingent incentive design that mitigates fiscal leakage while accelerating sustainable infrastructure transition in emerging and developing economies.
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📚 How to Cite:
Abdurazakov Shavkatjon Shokirdjanovich , ECONOMETRIC MODELING OF FISCAL INCENTIVE INSTRUMENTS FOR SUSTAINABLE TOURISM INFRASTRUCTURE DEVELOPMENT , Volume 13 , Issue 8, August 2026, EPRA International Journal of Economics, Business and Management Studies (EBMS) , Pages: 271 - 277 , DOI: https://doi.org/10.36713/epra28917