The link between tax rates and foreign direct investment

被引:45
作者
Cassou, SP
机构
[1] Department of Economics, Kansas State University
关键词
D O I
10.1080/00036849700000019
中图分类号
F [经济];
学科分类号
02 ;
摘要
This paper investigates the impact of tax policy on foreign direct investment flows between the US and other countries using a panel data empirical approach. Using panel data is an attractive alternative to using single time series data because it provides greater statistical power and offers greater flexibility in terms of explanatory variables. This study finds many significant factors influencing the transfer of funds component of foreign direct investment. Most noteworthy is that, in addition to host and home country corporate tax rates having a significant effect on investment flows, the host and home country income tax rates are also significant.
引用
收藏
页码:1295 / 1301
页数:7
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