International Taxation and Multinational Firm Location Decisions

Harry Huizinga, Salvador Barrios (), Luc Laeven and Nicodème, Gaëtan
Authors registered in the RePEc Author Service: Gaetan J.A. Nicodeme

No 7047, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Using a large international firm-level data set, we estimate separate effects of host and 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. In fact, the impact of parent country taxation is estimated to be relatively large, possibly reflecting its international discriminatory nature. For the cross-section of multinational firms, we find that parent firms tend to be located in countries with a relatively low taxation of foreign-source income. Overall, our results show that parent-country taxation ? despite the general possibility of deferral of taxation until income repatriation ? is instrumental in shaping the structure of multinational enterprise.

Keywords: Corporate taxation; Dividend withholding taxation; Location decisions (search for similar items in EconPapers)
JEL-codes: F23 G32 H25 R38 (search for similar items in EconPapers)
Date: 2008-11
New Economics Papers: this item is included in nep-cfn and nep-cse
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

Downloads: (external link)
https://cepr.org/publications/DP7047 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: International taxation and multinational firm location decisions (2012)
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)
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:cpr:ceprdp:7047

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP7047

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().