Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/103774
Authors: 
Görg, Holger
Strobl, Eric
Year of Publication: 
2014
Series/Report no.: 
Kiel Working Paper 1960
Abstract: 
We use a unique exogenous corporate tax policy change in the Republic of Ireland to investigate how corporate taxation affects foreign direct investment at the extensive and intensive margin. To this end we construct exhaustive sectoral and plant level panel data and use difference-in-differences strategies. Our results do not provide strong evidence that the increase in corporate tax rates for exporters did affect the entry or exit of plants from the US or UK in Ireland. Entry rates of German firms seem to be negatively affected, however. At the intensive margin there is evidence that foreign plants in Ireland reduce the size of their operations in response to the tax change.
Subjects: 
multinational companies
foreign direct investment
corporate tax
Ireland
difference-in-differences
JEL: 
F23
H25
Document Type: 
Working Paper

Files in This Item:
File
Size
832.34 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.