Davies, Ronald B.; Siedschlag, Iulia; Studnicka, Zuzanna - 2016
The design of optimal tax policy, especially with respect to attracting FDI, hinges on whether taxes affect … impact of taxation on FDI on these two margins. Using firm-level cross-border investments into Europe during 2004-2013, we do … invest only once, with 92 percent of tax-induced changes in aggregate inbound FDI driven by movements at the extensive margin …