Assessing the Importance of Taxation on FDI: Evidence from South-East Asian Developing Countries
Athiphat Muthitacharoen ()
PIER Discussion Papers from Puey Ungphakorn Institute for Economic Research
This study examines the influence of taxation on FDI using data from South-East Asia. It employs the quantile regression approach with fixed effects that provides a comprehensive view of the tax sensitivity across the FDI distribution. Estimates confirm the significantly negative impact of the bilateral effective average tax rate but its effect is heterogeneous across the distribution. This stresses the importance of understanding the effect of taxation across the distribution rather than only at the mean. Also, the economic significance of the tax is relatively smaller than that of other fundamental factors such as labor quality and governance.
Keywords: Tax Incentives; Effective Average Tax Rate; International Tax; Corporate Income Tax; FDI; South-East Asia; Developing Countries (search for similar items in EconPapers)
JEL-codes: F21 H25 H87 K34 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2017-07, Revised 2017-07
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Published in PIER Discussion Paper Series
Downloads: (external link)
https://www.pier.or.th/wp-content/uploads/2017/07/pier_dp_065.pdf Published version, 2017 (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pui:dpaper:65
Access Statistics for this paper
More papers in PIER Discussion Papers from Puey Ungphakorn Institute for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by PIER ().