This paper analyzes the impact of taxes and lending conditions on the financial structure ofmultinationals' foreign affiliates. The empirical analysis employs a large panel of affiliates ofGerman multinationals in 26 countries in the period from 1996 until 2003. In accordance withthe theoretical...

Corporate tax revenue and Foreign Direct Investment (FDI) are two key development finance sources according to the Addis Ababa Action Agenda for Financing for Development. These sources are important for developing countries to finance public goods and mobilize private investment for sustainable...