An important share of international exchanges take place within multinational firms, according to internal transfer prices. These prices can be influenced by cross-country differences in corporate taxation. A multinational group can reduce its global fiscal burden through overpricing of goods...

We argue in this paper that differences in corporate taxes between economies stimulate vertical integration of final goods producers and suppliers of intermediate goods causing more intra-firm trade. This is due to the fact that vertically integrated firms can shift profits from a high-tax...

This paper analyzes the link between FDI, corporate taxation, and corporate tax revenues. We find strong evidence that FDI in (out) flows are affected by tax regimes in the host (home) countries and FDI flows in turn affect the corporate tax base. Simulations of European Union (EU) harmonization...

The structure of Japan's corporate income tax system is broadly in line with those of other G7 countries. However, relatively high marginal and average effective tax rates prompt the question of whether adjustments should be considered to meet the objectives of promoting growth, investment and...

The firm-level approach to intra-industry trade reveals that the variation in the number of exporters or exported varieties (extensive margin) accounts for a greater share of the changes in aggregate trade than the variation in the average exports per firm variety (intensive margin). This paper...

The complex nature of ‘international outsourcing’ makes it difficult to quantify its employment and broader impacts on national economies. Indeed, available evidence on the extent of ‘offshoring’ by US firms is scant, rendering analyses of its economic impacts as...

This paper reviews the tax policy debate in the United States on the move of the corporation tax from its present worldwide basis to a territorial basis, and considers the implications for the United States and the rest of the world. It finds that there is no clear view on whether the move would...

This paper identifies tax factors in 21 developing countries that have an impact on foreign direct investment flows. It categorizes those factors into issues associated with tax coordination; tax rates and rate structures; and composition of the tax base. Recent actions by countries reveal no...

This paper aims firstly to determine the factors that lead multinational firms to internalise their international exchanges and secondly to analyse the impact of the implementation of the European Single Market on their strategies. This study is based on the “Industrial Globalisation” survey...