Ownership Restrictions, Tax Competition and Transfer Pricing Policy
AbstractThis paper analyzes tax/subsidy competition and transfer pricing regulation between governments involved in trade through a multinational firm and a joint venture using an input provided by the former.The paper takes into account the fact that in absence of bargaining, any model of such JV is discontinuous in the ownership distribution in that for di erent ownership distributions, control is either fully held by one party, or no party in particular.The paper therefore model control problems that are inherent to JVs without strongly dominant shareholder and provides along the way a rationale for indigenization policies that restrict foreign ownership.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2004-3.
Date of creation: 2004
Date of revision:
Contact details of provider:
Web page: http://center.uvt.nl
ownership; taxation; competition; price policy; control;
Find related papers by JEL classification:
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-02-08 (All new papers)
- NEP-PBE-2004-02-08 (Public Economics)
- NEP-PUB-2004-02-15 (Public Finance)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Prusa, Thomas J., 1990. "An incentive compatible approach to the transfer pricing problem," Journal of International Economics, Elsevier, vol. 28(1-2), pages 155-172, February.
- Svejnar, Jan & Smith, Stephen C, 1984. "The Economics of Joint Ventures in Less Developed Countries," The Quarterly Journal of Economics, MIT Press, vol. 99(1), pages 149-67, February.
- Gresik, Thomas A. & Nelson, Douglas R., 1994.
"Incentive compatible regulation of a foreign-owned subsidiary,"
Journal of International Economics,
Elsevier, vol. 36(3-4), pages 309-331, May.
- Gresik, T.A. & Nelson, D.R., 1991. "Incentive Compatible Regulation of a Foreign-Owned Subsidiary," Papers 5-91-3, Pennsylvania State - Department of Economics.
- Groot, Tom L. C. M. & Merchant, Kenneth A., 2000. "Control of international joint ventures," Accounting, Organizations and Society, Elsevier, vol. 25(6), pages 579-607, August.
- Elitzur, Ramy & Mintz, Jack, 1996. "Transfer pricing rules and corporate tax competition," Journal of Public Economics, Elsevier, vol. 60(3), pages 401-422, June.
- Falvey, Rodney E. & Harold O. Fried, 1986. "National ownership requirements and transfer pricing," Journal of Development Economics, Elsevier, vol. 24(2), pages 249-254, December.
- Stoughton, Neal M. & Talmor, Eli, 1994. "A mechanism design approach to transfer pricing by the multinational firm," European Economic Review, Elsevier, vol. 38(1), pages 143-170, January.
- Pascalis Raimondos-M¯ller, 2002. "Transfer pricing rules and competing governments," Oxford Economic Papers, Oxford University Press, vol. 54(2), pages 230-246, April.
- L. W. Copithorne, 1971. "International Corporate Transfer Prices and Government Policy," Canadian Journal of Economics, Canadian Economics Association, vol. 4(3), pages 324-41, August.
- Katrak, Homi, 1981. "Multi-National Firms' Exports and Host Country Commercial Policy," Economic Journal, Royal Economic Society, vol. 91(362), pages 454-65, June.
- Kashif S. Mansori & Alfons J. Weichenrieder, 2001. "Tax Competition and Transfer Pricing Disputes," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 58(1), pages 1-, December.
- Karabay, Bilgehan, 2010. "Foreign direct investment and host country policies: A rationale for using ownership restrictions," Journal of Development Economics, Elsevier, vol. 93(2), pages 218-225, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Richard Broekman).
If references are entirely missing, you can add them using this form.