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Do multinational companies shift profits out of developing countries?: How data availability may hide the evidence

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  • Caroline Schimanski

Abstract

This study aims at providing causal evidence for tax-motivated profit-shifting out of developing countries, which, while often claimed to be the most affected, have been largely neglected in the literature. It uses global firm-level panel data from 2006-2015 and identifies profit-shifting through earnings shocks relative to comparable firms' profitability that are passed on to affiliates within multinational corporations located in lower taxed countries. Unlike previous studies on profit-shifting, the present study is thereby able to control for country-pair-year fixed effects.

Suggested Citation

  • Caroline Schimanski, 2018. "Do multinational companies shift profits out of developing countries?: How data availability may hide the evidence," WIDER Working Paper Series wp-2018-52, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2018-52
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    References listed on IDEAS

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