Tax Factors of Foreign Direct Investments from the USA to the EU

Veronika Síbrtová (), Jana Tepperová and Jan Pavel
Additional contact information
Veronika Síbrtová: University of Economics, Prague

No 9511935, Proceedings of Economics and Finance Conferences from International Institute of Social and Economic Sciences

Abstract: The main aim of the paper is to analyze which factors have an impact on the allocation of US FDIs in the EU countries. We use multivariable regression and OECD and Eurostat data, including also indicators of tax systems promoting and/or enabling the structures of aggressive tax planning. The results suggest that US FDIs are more widely placed in large and developed countries. Based on the analysis of the tax factors, the allocation of US FDIs in the EU are influenced by the effective corporate tax rate and the existence of the patent box regime or other preferential tax treatment of income from IP rights. Our control model of the relationship between the indicators of the tax system and the effective corporate tax rate shows that the effective corporate tax rate is influenced by the statutory corporate tax rate and three aggressive tax planning indicators other than the preferential tax treatment of income from IP rights.

Keywords: FDI; Base Erosion; Profit Shifting; Tax Factors; Aggressive Tax Planning (search for similar items in EconPapers)
JEL-codes: H25 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2019-10
New Economics Papers: this item is included in nep-pbe
References: Add references at CitEc
Citations:

Published in Proceedings of the Proceedings of the 12th Economics & Finance Conference, Dubrovnik, Oct 2019, pages 325-334

Downloads: (external link)
https://iises.net/proceedings/12th-economics-finan ... 95&iid=022&rid=11935 First version, 2019

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sek:iefpro:9511935

Access Statistics for this paper

More papers in Proceedings of Economics and Finance Conferences from International Institute of Social and Economic Sciences
Bibliographic data for series maintained by Klara Cermakova ().