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Corporate taxes and FDI in developing economies

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  • Chigozie Andy Ngwaba

    (Bradley University)

Abstract

This study estimates the impact of corporate taxes on direct foreign investments in developing countries using corporate tax data from 1990 to 2015 put together for the study. The corporate tax database consists of statutory corporate tax rates from 65 developing countries across different regions of the world, including Africa, Asia, Latin America, the Caribbean, and the Middle East. Results from the study indicate that direct foreign investment is not sensitive to corporate taxes in developing economies. This suggests that the flow of foreign investments into developing host nations may be primarily driven by other factors like the availability of natural resources, infrastructure, trade, and other government policies.

Suggested Citation

  • Chigozie Andy Ngwaba, 2023. "Corporate taxes and FDI in developing economies," International Economics and Economic Policy, Springer, vol. 20(4), pages 613-633, October.
    • Handle: RePEc:kap:iecepo:v:20:y:2023:i:4:d:10.1007_s10368-023-00575-8
    DOI: 10.1007/s10368-023-00575-8
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