IDEAS home Printed from https://ideas.repec.org/p/dbp/wpaper/007.html
   My bibliography  Save this paper

Global profit shifting, 1975–2019

Author

Listed:
  • Ludvig Wier

    (Ministry of Finance, Denmark)

  • Gabriel Zucman

    (UC Berkeley and EU Tax Observatory)

Abstract

This paper constructs time series of global profit shifting covering the 2015–19 period, during which major international efforts were implemented to curb profit shifting. We find that (i) multinational profits grew faster than global profits, (ii) the share of multinational profits booked in tax havens remained constant at around 37 per cent, and (iii) the fraction of global corporate tax revenue lost due to profit shifting rose from 9 to 10 per cent. We extend our time series back to 1975 and document a remarkable increase of multinational profits and global profit shifting from 1975 to 2019.

Suggested Citation

  • Ludvig Wier & Gabriel Zucman, 2022. "Global profit shifting, 1975–2019," Working Papers 007, EU Tax Observatory.
    • Handle: RePEc:dbp:wpaper:007
    as

    Download full text from publisher

    File URL: https://www.taxobservatory.eu//www-site/uploads/2022/12/WP7_Global-Proft-Shifting_December2022.pdf
    File Function: Full working paper
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    multinationals; profit shifting; factor shares; taxation;
    All these keywords.

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

    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:dbp:wpaper:007. 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: Inga Chilashvili (email available below). General contact details of provider: https://edirc.repec.org/data/eutaxfr.html .

    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.