Imaginary capital migration and the competitive politics of corporate taxation

Jaakkola, Samuli; Ylönen, Matti; Saari, Leevi

doi:10.1080/13563467.2022.2054967

Cited by 3 publications

(2 citation statements)

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“…The competitiveness narrative suggested that, in a globalizing economy, the nationality of companies was increasingly irrelevant. In this view, the long-term success of a national economy depends not so much on the strength of nationally owned industries, but primarily on a country's ability to attract the economic activities of globally mobile companies of any (or no) nationality (Fougner, 2006;Jaakkola et al, 2022;Linsi, 2020;Puehringer et al, 2021). This change in thinking prepared the ground for a broader reorientation of British industrial strategy that gradually shifted from the strengthening of domestic industry across the country towards fomenting the development of an international financial industry hub around the City of London (Augar, 2000).…”

Section: A Blessing or A Curse? Inward Foreign Direct Investments In ...mentioning

confidence: 99%

Economic Narratives and the Legitimacy of Foreign Direct Investments

Linsi

2022

PaG

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In the 1990s, the primary focus of the international investment regime shifted from the restriction and regulation towards the promotion and attraction of foreign companies. Dominant accounts in the international political economy literature emphasize the role of interests and institutions in explaining this policy shift but pay little attention to their legitimation. This article argues that transformations in dominant economic discourses—and in particular the rise of the competitiveness narrative—played an important role in granting legitimacy to this U-turn in international economic affairs. To test the argument, the article focuses on the impact of the differential changes in the portrayal of greenfield and mergers and acquisitions (M&A) inward foreign direct investments (IFDI) in economic discourses in the UK before and after the rise of the competitiveness narrative. In line with the theoretical argument, findings indicate that individuals who passed their early adulthood in a period in which the narrative of economic statism was still prevalent hold notably more skeptical views of M&A IFDI even though they are otherwise not more opposed to investments from abroad. A causal mediation analysis lends further empirical support to the argument.

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Section: A Blessing or A Curse? Inward Foreign Direct Investments In ...mentioning

confidence: 99%

Economic Narratives and the Legitimacy of Foreign Direct Investments

Linsi

2022

PaG

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“…They are routinely organised in the form of intra-firm payments and often carried out with fictitious (nonmarket) prices. 232 The burgeoning of artificial capital movements has cut off the territory of economic value creation from the territory of tax obligations. While in the early phase of integration it was held possible that abnormal capital flows might result from the free movement of capital, they were now seen as having reached their full actuality.…”

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Taming the Leviathan or dismantling democratic government? Evolving political ideas on spontaneous income tax integration in the European Union

Jaakkola

2023

European Law Open

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By the turn of the 1990s, tax competition among national governments had emerged as a powerful law-making practice. The possibility of tax competition essentially depends on the design of transnational law, such as European law. This Article examines the change of economic, political, and legal ideas that have shaped responses by the European Communities and the European Union (EU) to income tax competition. It asserts that under the post-war settlement of embedded liberalism and moderate market integration, tax competition was not perceived as a fully developed phenomenon. Under increased cross-border economic mobility in the 1990s, tax competition became a critical concern but received a liberal and permissive reaction from the EU. In the 2010s, governing tax competition in the EU became a more vital topic. Still, in the contemporary EU, turning political ideas into legal rules capable of addressing tax competition remains hampered by the EU law requirement of unanimous decision-making. The European choice of whether and how to address tax competition involves profoundly contrasting ideas on the means by which to govern the socio-economic reality. The decision between spontaneous and regulated income tax integration is therefore a salient political question, but the unanimity rule undermines political contestation over tax competition and over the European model of fiscal federalism. The Article comes to a close by reflecting on whether the EU legal order offers means to overcome the deadlock of unanimity and whether it could accommodate a more properly political contestation over the Europeanisation of income taxation.

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The Economics of Tax Behavior: The Absence of a Reflexive Ethical-Economic Agent

Morgan

2023

Journal of Economic Issues

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Imaginary capital migration and the competitive politics of corporate taxation

Cited by 3 publications

References 53 publications

Economic Narratives and the Legitimacy of Foreign Direct Investments

Economic Narratives and the Legitimacy of Foreign Direct Investments

Taming the Leviathan or dismantling democratic government? Evolving political ideas on spontaneous income tax integration in the European Union

The Economics of Tax Behavior: The Absence of a Reflexive Ethical-Economic Agent

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