International taxation and multinational firm location decisions

Salvador Barrios (), Harry Huizinga, Luc Laeven and Gaëtan Nicodème

Journal of Public Economics, 2012, vol. 96, issue 11, 946-958

Abstract: Using a large international firm-level data set, we examine the separate effects of host and additional parent country taxation on the location decisions of multinational firms. Both types of taxation are estimated to have a negative impact on the location of new foreign subsidiaries. The impact of parent country taxation is estimated to be sizeable consistent with its international discriminatory nature. Our results show that international double taxation by the parent country – despite the general possibility of deferral of taxation until income repatriation – is instrumental in shaping the structure of multinational enterprise.

Keywords: Corporate taxation; Withholding taxes; Dividends; Location decisions; Foreign direct investment; Multinationals (search for similar items in EconPapers)
JEL-codes: F23 G32 H25 R38 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (111)

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Related works:
Working Paper: International taxation and multinational firm location decisions (2009)
Working Paper: International Taxation and Multinational Firm Location Decisions (2009)
Working Paper: International Taxation and Multinational Firm Location Decisions (2008)
Working Paper: International Taxation and Multinational Firm Location Decisions (2008)
Working Paper: International Taxation and Multinational Firm Location Decisions (2008)
Working Paper: International Taxation and Multinational Firm Location Decisions (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:96:y:2012:i:11:p:946-958

DOI: 10.1016/j.jpubeco.2012.06.004

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