Taxation and the Birth of Foreign Subsidiaries
AbstractThe paper studies the influence of tax policy on foreign direct investment with a particular emphasis on immature subsidiaries. Among other things it shows that taxes on repatriations reduce the subsidiary's "birth weight", that lump sum taxes reduce its cost of capital, and that the possibility of deferral increases this cost. The paper rejects the popular weighted average specification of the subsidiary's cost of capital.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 3519.
Date of creation: Nov 1990
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in: Taxation in the Global Economy, pages 11-52
National Bureau of Economic Research, Inc.
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NBER Working Papers
0349, National Bureau of Economic Research, Inc.
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- Joosung Jun, 1989. "Tax Policy and International Direct Investment," NBER Working Papers 3048, National Bureau of Economic Research, Inc.
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