Egger, Peter, Loretz, Simon, Pfaffermayr, Michael and Winner, Hannes (2008) Bilateral Effective Tax Rates and Foreign Direct Investment. Centre for Business Taxation WP 08/02.
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This paper computes effective (marginal and average) tax rates that ac- count for bilateral aspects of taxation and, therefore, vary across country pairs and years. These tax rates serve to estimate the impact of corporate taxation on outbound stocks of bilateral foreign direct investment (FDI) among OECD countries between 1991 and 2002. The findings indicate that outbound FDI is positively related to the parent and host country tax burden and negatively associated with bilateral effective tax rates. Re- lying only on unilateral (country and time variant) rather than on both unilateral and bilateral (country-pair and time variant) effective tax rates leads to biased estimates of the impact of corporate taxation on FDI.
|Item Type:||Other Working Paper|
|Keywords:||Corporate taxation; Foreign direct investment; Panel econometrics|
|Centre:||Oxford University Centre for Business Taxation > CBT Working Papers|
|Date Deposited:||24 May 2012 12:56|
|Last Modified:||15 Oct 2015 02:18|
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