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Services form an increasing proportion of the inputs used in manufacturing. We explore empirically whether competition …-data for services, we calculate proxies for competition in services, and then use Input-Output matrices to link services to … manufacturing sectors. we find that there is a positive and significant relation between the extent of competition and firms …
Persistent link: https://www.econbiz.de/10010266094
This paper studies corporate taxation in a model where foreign investment of firms may affect the profitability of the investor firm's domestic activities. In this framework, corporate taxes distort the quality, not just the quantity of foreign direct investment flows. High-tax countries may see...
Persistent link: https://www.econbiz.de/10010264233
In this paper, we analyze tax competition in a model where investor firms have the choice between two types of … intensifies tax competition in comparison to the case where there is only greenfield investment. If a specific tax on acquisitions … is available, this result changes. Then, tax competition is mitigated compared to the pure greenfield case. The existence …
Persistent link: https://www.econbiz.de/10010264323
The literature provides ambiguous results on the effect of taxes on businesses' choice of organizational form, partly due to a lack of good firm-level data. Our micro data covers the full population of non-financial Norwegian corporations over ten years. During this period, the dual income tax...
Persistent link: https://www.econbiz.de/10010264432
If conventional instruments of strategic trade policy are unavailable, the system of foreign profit taxation and transfer price guidelines may serve as surrogate policy instruments. In this paper, I consider a model where firms from two countries compete with each other on a third market. I...
Persistent link: https://www.econbiz.de/10010270452
This paper analyses tax competition and tax coordination in a model where capital flows occur in the form of mergers … do not necessarily distort international ownership patterns. Moreover, tax competition yields globally efficient levels …
Persistent link: https://www.econbiz.de/10010273808
This paper studies corporate tax competition if it is costly to learn some of the elements that determine the effective … tax burden. Search cost may, but need not, eliminate the tax competition pressure. The outcome depends on the boundaries …
Persistent link: https://www.econbiz.de/10010274937
We address the role of labor cost differentials for national tax policies. Using a simple theoretical framework with two countries competing for a mobile firm, we show that in a bidding race for FDI, it is optimal for governments to compensate firms for international labor cost differentials....
Persistent link: https://www.econbiz.de/10010275010
Using a large international firm-level data set, we estimate separate effects of host and parent country taxation on the location decisions of multinational firms. Both types of taxation are estimated to have a negative impact on the location of new foreign subsidiaries. In fact, the impact of...
Persistent link: https://www.econbiz.de/10010276037
This article studies the characteristics of a S-based tax system under default risk. In particular we show that its neutrality properties depend on whether debt is protected or unprotected. In the former case, this system is neutral. In the latter case, where default timing is optimally chosen...
Persistent link: https://www.econbiz.de/10010276131