9 National Tax Journal Vol. LIII, No. 1 Abstract We compare the tax-paying behavior of U.S. firms substantially influenced by foreign-domiciled firms with other U.S. firms. Because public information is lacking on U.S. firms whollyowned by foreign investors, we concentrate on publicly held firms with “significant,” but not 100 percent, foreign ownership. Public financial statements are analyzed...

This study systematically examines foreign R&D in China’s manufacturing industries, using the most recent census data published by China’s State Council. It reveals that foreign firms are committing less R&D resource than China’s domestic enterprises. Foreign R&D activities are far more active in high-tech industries than in labour-intensive industries. This study also demonstrates that China’s...

Elizabeth Weber Handwerker, Mina M. Kim, and Lowell Mason The Bureau of Economic Analysis (BEA) collects data on multinational companies based in the United States—firms that have full or partial ownership of affiliate companies in foreign countries. However, BEA data offer little detail on the characteristics of these firms’ U.S. employment. Identifying such firms in BLS data can show the geog...

We examine the impacts of agglomeration economies on the location of Foreign Direct Investment (FDI) in Vietnam. Using a large dataset that provides detailed information about individual firms, we investigate the location choices by 920 newly created foreign firms in 2009 in about 125 different 4-digit industries. The estimates of the conditional logit model show that agglomeration benefits mot...

In the new form of Globalization of R&D, Multinational (MNEs) firms have established their R&D units in emerging Asian countries, particularly in India and China. In the 1980s MNEs located their R&D units in their country of origin and were very reluctant to go offshore beyond triad (USA, Western Europe and Japan). However, in the last decade there is a growing trend of MNEs going emerging mark...

This version: March 3, 2004 This draft is very preliminary and incomplete. Please do not quote or circulate. Comments are welcome. Abstract Using the data from World Business Environment Survey (WBES) on over 10,000 firms across eighty one countries, this paper finds significant regulatory advantages—as perceived by the firms themselves—enjoyed by foreign firms over domestic firms. The findings...

This paper analyzes the existing asymmetry in the US corporate tax law governing the determination of foreign tax credits earned by US firms with foreign subsidiaries. The existing asymmetry results in the US government de facto holding foreign currency put options against US firms with foreign subsidiaries. Combined with the exchange rate volatility, this tax law asymmetry reduces the effectiv...

We argue that foreign firms operating in a host country generate information spillovers that have potential value for later foreign direct investment. We test two predictions. First, we expect foreign direct investments by firms with experience in a host country to be more likely to survive than investments made by first-time entrants. Second, foreign direct investments will be more likely to s...

We introduce foreign private firms into the model of Pal (1998) and investigate the impact of the introduction of foreign private firms on the endogenous timing in a mixed oligopoly in the linear demand case. We find that the public firm chooses to be a follower of all domestic private firms and that the public firm chooses not to be a leader of all foreign private firms, which is in contrast t...

Firms in developing countries typically cite credit constraints as one of their primary obstacles to investment. By bringing in scarce capital, it is often argued that foreign direct investment may ease domestic firms’ credit constraints. Alternatively, if foreign firms borrow heavily from domestic banks, they may exacerbate domestic firms’ credit constraints by crowding them out of domestic ca...