Political economy of cross-border income shifting: A protection racket approach

نویسندگان

چکیده

Multinational firms often shift their incomes to low-tax jurisdictions, thus robbing host states of tax revenue. I offer a new theory explain why some do this while others not. argue that are more vulnerable government expropriation are, counterintuitively, less likely income offshore, since complying fully with law gives the greater stake in survival. Analyzing registry-based panel data on multinational firms, burdens, and cross-sectional information firms’ connections havens, l find that, other things equal, concentrated fixed assets use havens. These results challenge existing theories political economy development. Whereas “Pillars Prosperity” suggests successful simultaneously develop protection property rights fiscal capacity, my show perfect can actually undermine state’s ability tax.

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ژورنال

عنوان ژورنال: Journal of Comparative Economics

سال: 2022

ISSN: ['0147-5967', '1095-7227']

DOI: https://doi.org/10.1016/j.jce.2022.05.002