Advanced Search
MyIDEAS: Login

Do Taxes Matter for Foreign Direct Investment?

Contents:

Author Info

  • Shah, Anwar
  • Slemrod, Joel

Abstract

The tax sensitivity of foreign direct investment (FDI) has important policy implications. If FDI is not responsive to taxation, then it may be an appropriate target for taxation by the host country. This question is examined for Mexico by estimating the response of FDI from retained earnings and transfers from abroad to the tax regimes in Mexico and the home country, the credit status of multinationals, country risk factors, and regulatory and trade regimes in Mexico. FDI in Mexico is found to be sensitive to the tax regimes in Mexico and the United States, the credit status of multinationals, country credit ratings, and the regulatory environment. Thus Mexico's current policies to dismantle regulations and employ a tax system competitive with the United States are expected to have salutary effects on FDI in Mexico. Copyright 1991 by Oxford University Press.

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

Article provided by World Bank Group in its journal World Bank Economic Review.

Volume (Year): 5 (1991)
Issue (Month): 3 (September)
Pages: 473-91

as in new window
Handle: RePEc:oup:wbecrv:v:5:y:1991:i:3:p:473-91

Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Phone: (202) 477-1234
Fax: 01865 267 985
Email:
Web page: http://wber.oxfordjournals.org/
More information through EDIRC

Order Information:
Web: http://www.oup.co.uk/journals

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Peter Egger & Simon Loretz & Michael Pfaffermayr & Hannes Winner, 2009. "Corporate Taxation and Multinational Activity," Working Papers 0904, Oxford University Centre for Business Taxation.
  2. Lotfali Agheli Kohnehshahri & Sara Emamgholi Poursefiddashti, 2006. "A Review of ECO Performance with Emphasis on FDI," Papers of the Annual IUE-SUNY Cortland Conference in Economics, in: Proceedings of the Conference on Human and Economic Resources, pages 264-282 Izmir University of Economics.
  3. Mark Rider, 2004. "Corporate Income Tax and Tax Incentives," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0428, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  4. Gollin, Douglas, 1995. "Do Taxes on Large Firms Impede Growth? Evidence from Ghana," Bulletins 7488, University of Minnesota, Economic Development Center.
  5. Nigel Andrew Chalk, 2001. "Tax Incentives in The Philippines: A Regional Perspective," IMF Working Papers 01/181, International Monetary Fund.
  6. Sebastian Sosa, 2006. "Tax Incentives and Investment in the Eastern Caribbean," IMF Working Papers 06/23, International Monetary Fund.
  7. Nzaro Robert & Njanike Kosmas, 2011. "An evaluation of financial strategies used by companies in the retail sector during recession period (2000-2010)," E3 Journal of Business Management and Economics., E3 Journals, vol. 2(1), pages 022-027.
  8. Ramirez Verdugo, Arturo, 2005. "Tax Incentives and Business Investment: New Evidence from Mexico," MPRA Paper 2272, University Library of Munich, Germany, revised 04 Oct 2006.
  9. Moshirian, Fariborz, 1999. "Sources of growth in international insurance services," Journal of Multinational Financial Management, Elsevier, vol. 9(2), pages 177-194, March.
  10. Peter Egger & Simon Loretz & Michael Pfaffermayr & Hannes Winner, 2008. "Bilateral Effective Tax Rates and Foreign Direct Investment," Working Papers 0802, Oxford University Centre for Business Taxation.
  11. Moshirian, Fariborz, 1997. "Foreign direct investment in insurance services in the United States," Journal of Multinational Financial Management, Elsevier, vol. 7(2), pages 159-173, June.
  12. Moshirian, Fariborz, 2001. "International investment in financial services," Journal of Banking & Finance, Elsevier, vol. 25(2), pages 317-337, February.
  13. Moshirian, Fariborz & Bishop, Robert, 1997. "International business: determinants of interbank activities," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 7(4), pages 329-349, December.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:oup:wbecrv:v:5:y:1991:i:3:p:473-91. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.