Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/19640
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dc.contributor.authorWolff, Guntram B.en_US
dc.date.accessioned2009-01-28T16:01:39Z-
dc.date.available2009-01-28T16:01:39Z-
dc.date.issued2006en_US
dc.identifier.urihttp://hdl.handle.net/10419/19640-
dc.description.abstractForeign direct investment is of increasing importance in the European Union.This paper estimates the effect of taxes on foreign direct investment (FDI)flows and on three sub-components of these flows for the countries of the en-larged European Union. The model in the spirit of gravity equations robustlyexplains FDI flows between the 25 member states. Sample selection needs tobe addressed in the estimation. We show that the different subcomponentsof FDI should and indeed do react differently to taxes. After controlling forunobserved country characteristics and common time effects, the top statutorycorporate tax rate of both, source and host country, turn insignificant fortotal FDI and investment into equity. However, high source country taxesclearly increase the probability of firms to re-invest profits abroad and lowerthe percentage of debt financed FDI. This might reflect profit re-allocationto avoid taxes. Market size factors have the expected signs for total FDI.Non-productivity adjusted wages as determinants of FDI are less robust.en_US
dc.language.isoengen_US
dc.publisher|aDeutsche Bundesbank |cFrankfurt a. M.-
dc.relation.ispartofseries|aDiscussion paper Series 1 / Volkswirtschaftliches Forschungszentrum der Deutschen Bundesbank |x2006,13en_US
dc.subject.jelH8en_US
dc.subject.jelH2en_US
dc.subject.jelF2en_US
dc.subject.jelF3en_US
dc.subject.jelE6en_US
dc.subject.jelF4en_US
dc.subject.ddc330en_US
dc.subject.keywordForeign direct investmenten_US
dc.subject.keywordFDIen_US
dc.subject.keywordcorporate taxesen_US
dc.subject.keywordsample selection modelen_US
dc.subject.keywordprofit re-allocationen_US
dc.subject.stwUnternehmensbesteuerungen_US
dc.subject.stwSteuerwirkungen_US
dc.subject.stwDirektinvestitionen_US
dc.subject.stwGewinnverlagerungen_US
dc.subject.stwEU-Staatenen_US
dc.subject.stwEU-Staaten <Osteuropa>en_US
dc.titleForeign direct investment in the enlarged EU: do taxes matter and to what extent?en_US
dc.typeWorking Paperen_US
dc.identifier.ppn510394078en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:bubdp1:4249-

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