Desai, Mihir A.; Dharmapala, Dhammika - 2007
outbound capital flows reflect efforts to bypass home country tax regimes and weak host country investor protections. The cross …-country analysis indicates that a 10% decrease in a foreign country's corporate tax rate increases US investors' equity FPI holdings by … 21%, controlling for effects on FDI. This suggests that the residual tax on foreign multinational firm earnings biases …
