The link between tax rates and foreign direct investment
- 1 October 1997
- journal article
- research article
- Published by Taylor & Francis Ltd in Applied Economics
- Vol. 29 (10), 1295-1301
- https://doi.org/10.1080/00036849700000019
Abstract
This paper investigates the impact of tax policy on foreign direct investment flows between the US and other countries using a panel data empirical approach. Using panel data is an attractive alternative to using single time series data because it provides greater statistical power and offers greater flexibility in terms of explanatory variables. This study finds many significant factors influencing the transfer of funds component of foreign direct investment. Most noteworthy is that, in addition to host and home country corporate tax rates having a significant effect on investment flows, the host and home country income tax rates are also significant.This publication has 4 references indexed in Scilit:
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- TAX POLICY AND FOREIGN DIRECT INVESTMENT IN THE UNITED STATESNational Tax Journal, 1984
- Current Account Imbalances and Capital Formation in Industrial Countries, 1949-81 (Desequilibres des transactions courantes et formation de capital dans les pays industrialises, 1949-81) (Los desequilibrios en cuenta corriente y la formacion de capital en los paises industriales, 1949-81)Staff Papers, 1984
- Domestic Saving and International Capital FlowsThe Economic Journal, 1980