Capital income tax policy affects investment by the parent and affiliates of multinational corporations (MNCs). In a … model in which technical advances are embodied in new capital, investment will translate directly into productivity gains … production function parameter estimates. These estimates are used to analyze the sources of MNC's growth. Three findings stand …

We examine the neoclassical investment model using a panel of U.S. manufacturing firms. The standard model with no … for firms with low (pre-sample) payouts (firms we expect to face financing constraints). Hem, investment is sensitive to … both firm cash flow and macroeconomic credit conditions, holding constant investment opportunities. Sample splits based on …

This paper analyzes the impact on firm behavior of the Homeland Investment Act of 2004, which provided a one-time tax …. Repatriations did not lead to an increase in domestic investment, employment or R&D -- even for the firms that lobbied for the tax …

Foreign direct investment (FDI) is observed to be a predominant form of capital flows to low and middle income … productive investment in the presence of asymmetric information between the managing owners of firms and other portfolio … stakeholders. We emphasize the crucial role played by FDI in sustaining equity-financed capital investment for economies plagued by …

This paper studies the investment creation and diversion effects of the EU's Single Market programme (EU92). We first … present empirical evidence which suggests that EU92 caused investment diversion in the European Free Trade Association (EFTA …) nations and investment creation in the EU. The economic logic behind this is simple. Discriminatory liberalization shifts …

strong agglomeration economies in Japanese investment. Two policy variables are consistently shown to influence the location … of investment - foreign trade zones and labor subsidies. We use simulations to explore the impact these policies had on … the geographic distribution of Japanese investment. The simulations reveal that in aggregate promotion programs largely …

This paper extends previous research on the effect of investment on labor productivity at the country level by … accounting for investment in R&D, as well as for investment in fixed and human capital. Privately-funded R&D investment is found … social (national) rate of return to private R&D investment is about seven times as large as the return to investment in …