Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/152465
Authors: 
Gropp, Reint
Kostial, Kristina
Year of Publication: 
2000
Series/Report no.: 
ECB Working Paper 31
Abstract: 
This paper analyzes the link between Foreign Direct Investment (FDI), corporate taxation, and corporate tax revenues. We find strong evidence that FDI in (out) flows are affected by tax regimes in the host (home) countries and FDI flows in turn affect the corporate tax base. Simulations of EU harmonization (isolating the revenue effect of FDI on the tax base from direct effects through the rate harmonization) suggest that high (low) tax countries would gain (lose) revenue from harmonization; these effects may be substantial. Our results also suggest that EU tax harmonization would significantly affect the net FDI position of some countries.
Subjects: 
corporate taxation
Foreign Direct Investment
OECD countries
revenues
simulations
JEL: 
H25
H87
F21
F42
F47
Document Type: 
Working Paper

Files in This Item:
File
Size





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