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establish an FDI. Property rights theory suggests that contract enforcement matters differentially across sectors. This paper is … the first attempt to test whether institutions matter differentially across different sectors in FDI decision. Using data …
Persistent link: https://www.econbiz.de/10013316890
The use of tax havens by multinational corporations (MNCs) has attracted increasing attention and scrutiny in recent years. This paper provides an exposition of the academic literature on this topic. It begins with an overview of the basic facts regarding MNCs' use of havens, which are...
Persistent link: https://www.econbiz.de/10012834357
This paper explores empirically whether and how FDI is affected if multinationals’ home countries change taxation of … foreign earnings by switching from worldwide to territorial taxation. Our analysis employs data for German inbound FDI based … synthetic-control method. Our results confirm effects of the switch from worldwide to territorial taxation on FDI but point at …
Persistent link: https://www.econbiz.de/10012892126
This paper shows that Investor-State Dispute Settlements (ISDS) makes multinational firms more aggressive by increasing cost-reducing investments with the aim to enlarge the potential compensation an ISDS provision may offer. While a larger investment reduces the market distortion, it will also...
Persistent link: https://www.econbiz.de/10012823148
. The MP links significantly amplified the impact of these shocks on the rest of the world, which had a much greater impact …
Persistent link: https://www.econbiz.de/10014358332
We study the implications of two historical institutions, direct British rule, and the heterogeneous land tenure institutions implemented by the British, on disparity in present day development using district level data from India. Using nightlights per capita as a proxy for district level per...
Persistent link: https://www.econbiz.de/10013231963
The offshoring of production by multinational firms has expanded dramatically in recent decades, increasing these firms’ potential for economic growth and technological transfers across countries. What determines the location of offshore production? How do countries' policies and...
Persistent link: https://www.econbiz.de/10012892039
We develop a model where firms profit from coercing workers into employment under conditions violating national law and international conventions and where bureaucrats benefit from accepting bribes from detected perpetrators. Firms and bureaucrats are heterogeneous. Employers differ in their...
Persistent link: https://www.econbiz.de/10012859047
The structure of a multinational firm, that is how its affiliates relate to one another, is critical for understanding where multinationals locate, how policy affects them, and their resilience to localized shocks. Here, we review the two main structures: horizontal investments which replicate...
Persistent link: https://www.econbiz.de/10012839765
In 2009, the United Kingdom abolished the taxation of profits earned abroad and introduced a territorial tax system. Under the territorial system, firms have strong incentives to shift profits abroad. Using a difference-in-differences research design, we show that profits of UK subsidiaries in...
Persistent link: https://www.econbiz.de/10012842969