| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5067072 | European Economic Review | 2012 | 15 Pages |
Abstract
⺠We investigate cross-border effects of corporate taxes on multinational investment. ⺠With common inputs, taxes in the parent country reduce affiliate investment abroad. ⺠Using data for European MNEs, we find evidence in line with this hypothesis. ⺠A parent tax increase by 10 percentage points dampens affiliate investment by 5.6%. ⺠From a welfare perspective, the effect gives rise to a negative fiscal externality.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Johannes Becker, Nadine Riedel,