The determinants of tax haven FDI |
| |
Institution: | Economics & Strategy Group, Aston Business School, Aston University, Birmingham B4 7ET, UK |
| |
Abstract: | This paper examines the determinants of a multinational enterprise's (MNEs) decision to set up tax haven subsidiaries. We adapt the firm-specific advantage–country-specific advantage (FSA–CSA) framework and construct a number of empirically testable hypotheses. The analysis is based on a database covering 14,209 MNEs in twelve OECD countries. We find that the variety of capitalism of a MNEs home location and the level of technological intensity has a strong impact on this decision. We also find that the home country corporate tax rate has a minimal impact. This suggests that corporate tax liberalisation is unlikely to deter MNEs from undertaking this activity. |
| |
Keywords: | Theory of FDI and the MNE Corporate taxation Probit regression Tax havens Varieties of capitalism |
本文献已被 ScienceDirect 等数据库收录! |