Tax Effects on Foreign Direct Investment in the U.S.: Evidence from a Cross-Country Comparison
dc.contributor.author | Slemrod, Joel | en_US |
dc.date.accessioned | 2013-11-14T23:22:23Z | |
dc.date.available | 2013-11-14T23:22:23Z | |
dc.date.issued | 1989-04 | en_US |
dc.identifier.other | MichU DeptE ResSIE D254 | en_US |
dc.identifier.other | F210 | en_US |
dc.identifier.other | F230 | en_US |
dc.identifier.other | H250 | en_US |
dc.identifier.other | H870 | en_US |
dc.identifier.uri | https://hdl.handle.net/2027.42/100973 | |
dc.description.abstract | This paper investigates how the tax system of the U.S. and the capital-exporting country combine to affect the flow of foreign direct investment (FDI) into the U.S. First, using aggregate data, it corroborates earlier work suggesting that the U.S. effective tax rate does influence the amount of FDI financed by transfers of funds, but not the amount financed by retained earnings. The data are then disaggregated by major capital-exporting countries to see if, as theory would suggest, FDI from countries which exempt foreign-source income from taxation is more sensitive to U.S. tax rates than FDI from countries which attempt to tax foreign-source income. The data analysis does not reveal a clear differential responsiveness between these two groups of countries, suggesting either difficulties in accurately measuring effective tax rates or the availability of financial strategies which render the home country tax system immaterial in affecting the return on FDI. | en_US |
dc.description.sponsorship | Research Seminar in International Economics, Department of Economics, University of Michigan | en_US |
dc.relation.ispartofseries | Seminar Discussion Paper | en_US |
dc.subject | Investments | en_US |
dc.subject | Foreign Investments | en_US |
dc.subject | Investment Policy | en_US |
dc.subject.other | International Investment | en_US |
dc.subject.other | Long-term Capital Movements | en_US |
dc.subject.other | Multinational Firms | en_US |
dc.subject.other | International Business | en_US |
dc.subject.other | Business Taxes and Subsidies Including Sales and Value-added (VAT) | en_US |
dc.subject.other | International Fiscal Issues | en_US |
dc.subject.other | International Public Goods | en_US |
dc.subject.other | U.S. | en_US |
dc.title | Tax Effects on Foreign Direct Investment in the U.S.: Evidence from a Cross-Country Comparison | en_US |
dc.type | Working Paper | en_US |
dc.subject.hlbsecondlevel | Economics | en_US |
dc.subject.hlbtoplevel | Social Sciences | en_US |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/100973/1/ECON416.pdf | |
dc.owningcollname | Economics, Department of - Working Papers Series |
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Economics, Department of - Working Papers Series
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