An investigation into whether a link exists between corporate taxation and international flows of direct investment

Research output: Working paperWorking paper series

Abstract

The question of whether a country’s corporate tax regime has a significant influence on the level of foreign direct investment into that country is an important consideration in the design of national tax policy. This is especially true today in view of the recent increase in the global mobility of capital and subsequent increase in the importance of FDI to nations’ economies. However, research to date on this question has so far yielded inconclusive results.

By obtaining evaluations from taxation experts of the various attributes of the tax systems of selected countries, this study constructs indices of corporate tax attractiveness for those countries. It then analyses the relationship between those indices and data concerning the flow of foreign direct investment into those countries.

No statistically significant relations hip was found to exist between the indices and the various measures of capital inflows. However, a significant relationship was found between one of the attributes, the availability and extent of tax incentives, and the measures of FDI, suggesting avenues for further research.
Original languageEnglish
Place of PublicationHong Kong
PublisherHong Kong Institute of Business Studies
Number of pages19
Publication statusPublished - Jun 2000

Publication series

NameHong Kong Institute of Business Studies Working Paper Series
PublisherLingnan University
No.036-990

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Direct investment
Corporate taxation
Foreign direct investment
Corporate tax
Attractiveness
Capital inflows
Tax incentives
Evaluation
Taxation
Tax system
Country studies
Tax policy

Cite this

SIMMONS, R. S. (2000). An investigation into whether a link exists between corporate taxation and international flows of direct investment. (Hong Kong Institute of Business Studies Working Paper Series; No. 036-990). Hong Kong: Hong Kong Institute of Business Studies.
SIMMONS, Richard S. / An investigation into whether a link exists between corporate taxation and international flows of direct investment. Hong Kong : Hong Kong Institute of Business Studies, 2000. (Hong Kong Institute of Business Studies Working Paper Series; 036-990).
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SIMMONS, RS 2000 'An investigation into whether a link exists between corporate taxation and international flows of direct investment' Hong Kong Institute of Business Studies Working Paper Series, no. 036-990, Hong Kong Institute of Business Studies, Hong Kong.

An investigation into whether a link exists between corporate taxation and international flows of direct investment. / SIMMONS, Richard S.

Hong Kong : Hong Kong Institute of Business Studies, 2000. (Hong Kong Institute of Business Studies Working Paper Series; No. 036-990).

Research output: Working paperWorking paper series

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SIMMONS RS. An investigation into whether a link exists between corporate taxation and international flows of direct investment. Hong Kong: Hong Kong Institute of Business Studies. 2000 Jun. (Hong Kong Institute of Business Studies Working Paper Series; 036-990).