There is a large literature documenting that high host-country corporate taxes deter foreign direct investment. However, some recent papers have questioned the robustness of this result in developing countries. In this paper we investigate one possible reason: the presence of a trade-off between...

Host country government officials in developing and developed countries alike would like to know the impact of their public policies on foreign investment in their countries. Unfortunately, the literature does not provide a single view, and there are likely to be differences between developing...

This paper attempts to broaden the existing empirical literature on foreign direct investment by incorporating government expenditure policies, such as investment in infrastructure, and institutional factors that may impact business investment, such as corruption, along with other conventional...

This paper attempts to broaden the existing empirical literature on foreign direct investment by incorporating government expenditures (both investment in infrastructure and consumption) as well as tax, classical location factors, institutional factors that may hinder business investment (such...

In this paper, we use pooled data for central-provincial and provincial-local governments in 2000-01, overall involving over 4000 sub-provincial governments, to assess China 's sub-national fiscal equalization practices and outcomes. Our goal is to explain horizontal fiscal disparities between...

This paper examines the impact of three host country government policies (taxation, good governance, and infrastructure) on the host's FDI stock. We focus on whether the impact of these factors differs depending on the level of development of the host country. The regression results indicate...

The main objective of the paper is to propose a framework in which fiscal health conditions can be assessed and the main determinants affecting fiscal health can be identified, inspite of severe data constraints. The paper draws on big urban agglomerations in India as well as smaller cities as a...

Although corruption and tax evasion are distinct and separate problems, they can easily become intertwined and reinforcing. A society that is more corrupt may enable more tax evasion as corrupt officials seek more income via bribes; conversely, higher levels of tax evasion may drive corruption...

The most important tax development of the last half century has undoubtedly been the rise to prominence of the value-added tax (VAT).2 This tax has taken center stage almost everywhere (with the significant exception of the United States) and has become a revenue mainstay for many countries. The...