IDEAS home Printed from https://ideas.repec.org/a/taf/pocoec/v35y2023i4p368-383.html
   My bibliography  Save this article

Taxation as a factor in investment attractiveness in the Visegrád countries

Author

Listed:
  • Vít Jedlička

Abstract

Managers take into account the tax burden when they decide about a new investment; therefore, they seek countries with lower tax rates. Governments respond to these requirements and battle for new investments by lowering tax rates as part of tax competition. This study focuses on the Visegrád countries as a region of new foreign investments from other OECD countries, and analyses the determinants of a bilateral FDI position of equity. As a model, it uses dynamic panel regression with GMM estimation. Results show that FDIs are affected by the level of difference in corporate taxation and the size of both countries. Every other potential determinant has no effect on the level of investment. These results show that foreign investors care about tax burdens more when investing within the Visegrád Group. Visegrád countries are relatively close when considering conditions for business; therefore, the most important difference becomes the taxation of profits.

Suggested Citation

  • Vít Jedlička, 2023. "Taxation as a factor in investment attractiveness in the Visegrád countries," Post-Communist Economies, Taylor & Francis Journals, vol. 35(4), pages 368-383, May.
    • Handle: RePEc:taf:pocoec:v:35:y:2023:i:4:p:368-383
    DOI: 10.1080/14631377.2023.2169522
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/14631377.2023.2169522
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/14631377.2023.2169522?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:pocoec:v:35:y:2023:i:4:p:368-383. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CPCE20 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.