Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/123140
Authors: 
Merz, Julia
Overesch, Michael
Wamser, Georg
Year of Publication: 
2015
Series/Report no.: 
CESifo Working Paper 5500
Abstract: 
This paper analyzes how corporate taxation and regulatory requirements affect the location of financial sector FDI. We use novel information on new financial services entities established by multinational firms in 83 host countries. We find a negative effect of host country taxes on the probability of choosing a particular host location. We can also confirm a significant influence of the regulatory environment. For example, stricter (equity) capital requirements negatively affect location probabilities. Our empirical approach allows us to provide new insight in how a policy measure of a given country affects other countries by estimating cross-country tax and regulation elasticities.
Subjects: 
financial sector taxation
multinational banks
corporate taxation
mixed logit model
JEL: 
F30
G21
G28
H87
Document Type: 
Working Paper

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