In 2001, Romania gave an income tax break to a select group of software programmers. Isabela Manelici (London School of Economics) explains how this particular industrial policy helped stem Romania’s “brain drain” problem, transformed the country’s information technology sector, and fostered economic development (51:22).
- Manelici, Isabela and Smaranda Pantea. 2021. “Industrial Policy at Work: Evidence from Romania’s Income Tax Break for Workers in IT.” European Economic Review v133: 103674.