Ma, Jie; Raimondos-Møller, Pascalis - CESifo - 2015
When countries compete for the location of a new multinational plant they need to be aware of the profit shifting … profit shifting opportunities. As a result of this, large countries will not be able to capitalize on their size and sustain … high corporate taxes. We show that, on the basis of these profit shifting opportunities, a small country can easily win the …