The Resource Competition for FDI and profit shifting : on the effects of subsidies and tax breaks

Competition for FDI and profit shifting : on the effects of subsidies and tax breaks

Label
Competition for FDI and profit shifting : on the effects of subsidies and tax breaks
Title
Competition for FDI and profit shifting : on the effects of subsidies and tax breaks
Creator
Subject
Language
eng
Summary
This paper investigates competition for FDI (foreign direct investment) within a region when a foreign multinational firm can profitably exploit differences in statutory corporate tax rates by shifting taxable profits to lower-tax jurisdictions. In such a framework it shows that targeted tax competition may lead to higher welfare for the region as a whole than lump-sum subsidies when the difference in statutory corporate tax rates and/or their average is high enough. Tax competition can also increase overall surplus by changing the firm's investment decision when profit-shifting motivations induce the firm to locate in the (before-tax) least profitable country
Citation source
In: FinanzArchiv. - Tübingen. - Vol. 70 (2014),
http://library.link/vocab/creatorName
  • Amerighi, O
  • De Feo, G
Geographic coverage
International
Language note
English
http://library.link/vocab/subjectName
  • foreign investment
  • profit shifting
  • tax competition
  • corporate income tax
  • subsidy
Label
Competition for FDI and profit shifting : on the effects of subsidies and tax breaks
Instantiates
Publication
Label
Competition for FDI and profit shifting : on the effects of subsidies and tax breaks
Publication

Library Locations

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      52.3736660 4.9336932
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