We demonstrate that the choice of the transfer price and its effect on intra-firm trade and investment depends on the …

between countries generates positive investment spillover, intra-firm production linkages predict negative spillover. Using … subsidiary-level data and exogenous corporate tax hikes, we find that local business units cut investment by 0.4% for a 1 …

investment incentives. Our theoretical model integrates the different OECD's transfer pricing methods into the tax planning cost … intermediate good, tax-motivated transfer pricing has positive investment effects. However, when the transfer pricing method treats … profit shifting by price and quantity symmetrically, tax-motivated transfer pricing does not impact investment on the …

subsidies. -- Labor taxation ; human capital investment ; education subsidies ; idiosyncratic risk ; risk properties of human …