The importance of corporate taxation for FDI attractiveness of southeast European countries

Kersan-Škabić, Ines

doi:10.2298/pan1501105k

Cited by 26 publications

(19 citation statements)

References 33 publications

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“…Three of them define taxes as a weak determinant (Bénassy-Quéré et al, 2005;Buettner and Wamser, 2013;Herger et al, 2016). Some four others point to taxes at the same level as other determinants -tax shields, market size, agglomeration effects, public infrastructure (Bénassy-Quéré et al, 2007;Kersan-Škabić, 2015).…”

Section: Discussionmentioning

confidence: 99%

The Influence of Taxes on Foreign Direct Investment: Systematic Literature Review and Bibliometric Analysis

Peter¹,

Michele²

2020

ERSJ

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Purpose: The paper proposes a systematic review and bibliometric analysis of the corporate finance literature on tax and multinational investment, since the complexity of legislations and taxation is a challenge to researchers who seek to understand their influence on corporate financing decisions. It presents the most relevant papers about the influence of taxes on corporate capital structure, classifies and codifies the various characteristics of these articles, describes the strengths and weaknesses of the studies and provides an agenda and a research framework to address the key gaps in the current knowledge on the theme. Approach/Methodology/Design: The study classifies 41 selected articles cited in the WoS database. The papers are reviewed and their main contributions are identified. Findings: The results indicate that tax is a determinant for multinational companies. However, the complexity of the legislations implies problems in estimating and the results of these studies. Among the knowledge gaps identified, the estimation problems of the models stand out, due to the difficulty in calculating the tax proxies. The papers present opposite results for the same information bases and research problems, depending on how the tax independent variable is modulated. Practical Implications: The study will contribute positively to the understanding of foreign direct investments, world organizations, multinational companies and investors. Originality/Value: To the best of the authors´ knowledge, this is the first systematic review identifying what is missing in the literature on taxation and capital structure of multinationals, while offering recommendations for future studies.

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Section: Discussionmentioning

confidence: 99%

The Influence of Taxes on Foreign Direct Investment: Systematic Literature Review and Bibliometric Analysis

Peter¹,

Michele²

2020

ERSJ

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“…Similarly, Kersan-Skabic using data on EU transition economies fails to find evidence that tax rates significantly affect the long-run elasticity of FDI [28]. Studies of Daniels and Egger based on data from the US and other OECD countries basically do not confirm a precise impact of tax rates on the long-run elasticity of foreign investment [29,30].…”

Section: Tax Rates and Foreign Direct Investmentmentioning

confidence: 92%

International Aspects of Corporate Income Taxes and Associated Distortions

Birškytė¹,

Giriūnienė²

2018

Taxes and Taxation Trends

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The purpose of this chapter is to review the latest developments in corporate income tax (CIT) focusing on its international aspects and associated distortions. In this endeavor, the chapter draws on evidence provided by the leading tax experts as well as on the profound and rigorous research produced by academia. This chapter examines and synthesizes research on tax competition, relationship between tax rates and foreign direct investment (FDI), and tax avoidance as a result of differential tax regimes. Trends in the development of CIT are discerned using statistical data provided by OECD and European Commission. Numerous studies done on global, regional, and country-specific datasets support the premise that indeed tax competition for capital exists though the magnitude of effects varies. There is also enough evidence that tax avoidance and evasion through base erosion and profit shifting persist for some time and may be on the rise.

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“…Bannour and Mtar(2015) showed that country size, international trade openness of the economy, infrastructure, geographic proximity, political stability, and skilled human capital are deterministic elements of FDI in Tunisia. Kersan-Skabic (2015) showed that most determinant elements of FDI in southeast European countries are market size, growth rates, GDP per capita, and wages. Padaki and Goel (2015) found that FDI does not provide a relationship on international trade.…”

Section: Fdi and The Channel For International Transmissionmentioning

confidence: 99%

Do FDI and TPP without the United States Promote Stability in TPP Countries?

Kurihara¹

2016

JEDS

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This paper analyzes the relationship between foreign direct investment (FDI) and cross-country business cycles in Trans-Pacific Partnership (TPP) member countries. The U.S. President Trump decided to withdraw from TPP, and it is unclear whether or not this decision is beneficial for the U.S. economy. However, this paper focuses on FDI and examines whether the TPP without the United States would be beneficial for the member countries. Concretely, 11 or 12 member countries' business cycles are taken into consideration for empirical analysis. Empirical studies show that FDI is an important channel through which economies may affect each other in a significant fashion, especially for the 12 economies of the TPP member countries. FDI will be an important key element in the success of the freer market. If the United States withdraws from the TPP, there would be a serious loss for the remaining 11 countries. There would also be a loss for the U.S. economy.

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The importance of corporate taxation for FDI attractiveness of southeast European countries

Cited by 26 publications

References 33 publications

The Influence of Taxes on Foreign Direct Investment: Systematic Literature Review and Bibliometric Analysis

The Influence of Taxes on Foreign Direct Investment: Systematic Literature Review and Bibliometric Analysis

International Aspects of Corporate Income Taxes and Associated Distortions

Do FDI and TPP without the United States Promote Stability in TPP Countries?

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