Are less developed countries more exposed to multinational tax avoidance?: Method and evidence from micro-data

Niels Johannesen, Thomas Tørsløv and Ludvig Wier

No wp-2016-10, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: NOTE | Revised version May 2017 available. View and download the revised version . We use a global dataset with information on 210,000 corporations in 102 countries to investigate whether cross-border profit shifting by multinational firms is more prevalent in less developed countries. We propose a novel technique to study aggressive profit shifting and improve the credibility of existing techniques. Our results consistently show that the sensitivity of reported profits to profit-shifting incentives is negatively related to the level of economic and institutional development.

Keywords: International business enterprises; Tax evasion; Taxation (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (40)

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Journal Article: Are Less Developed Countries More Exposed to Multinational Tax Avoidance? Method and Evidence from Micro-Data
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