The Effects of Tax Rates on Foreign Direct Investment in China
نویسنده
چکیده
The paper presents empirical evidence about the relation between taxes and the distribution of foreign direct investment in China. The estimation results show that taxes have a significantly negative effect on the location of FDI. It is also found that the cities that were opened up earlier have a head start compared with those opened up later in terms of accumulative FDI.
منابع مشابه
Achieving Regional Convergence through the Role of Foreign Direct Investment and Portfolio Investment: Evidence from ASEAN+3
T he purpose of this study is to analyze the effect of foreign direct investment and portfolio investment on the convergence occurrence of economic growth of countries in the ASEAN + 3 region and to determine the time or speed required to achieve convergence. The type of data used in this research is secondary data panel which is combination between time series data and cross-section...
متن کاملForeign Direct Investment in a World of Multiple Taxes
Governments impose multiple taxes on foreign investors, though studies of the effect of tax policy on the location of foreign direct investment (FDI) focus almost exclusively on corporate income taxes. This paper examines the impact of indirect (non-income) taxes on FDI by American multinational firms, using affiliate-level data that permit the introduction of controls for parent companies and ...
متن کاملTax competition for foreign direct investment under information uncertainty
a r t i c l e i n f o JEL classification: F23 H25 Keywords: Corporate taxation International profit shifting Real options FDI The relation between taxation states and foreign direct investment (FDI) has been studied from several perspectives and with states at different levels of development. Most previous studies, however, have only considered the impact of tax level on FDI volume. This paper ...
متن کاملThe Effects of Good Governance on Foreign Direct Investment in Middle-Income Countries
This is undoubtedly recognized that economic performance for each country over time is related to a great extent to its political, institutional and legal environment. In fact, these institutions and policies are that determine the governance quality. Â In a panel data study, we applied newly developed indices to examine the effects of good governance on FDI for fifteen middle-income countri...
متن کاملIn praise of tax havens: International tax planning and foreign direct investment
The multinationalization of corporate investment in recent years has given rise to a number of international tax avoidance schemes that may be eroding tax revenues in industrialized countries, but which may also reduce tax burdens on mobile capital and so facilitate investment. Both the welfare effects of and the optimal response to international tax planning are therefore ambiguous. Evaluating...
متن کامل