Summary In the present paper, I analyse the competitive behaviour of benevolent governments in the presence of (capital) income tax evasion when information exchange is not possible. My approach is to introduce a cost of evasion function into an otherwise standard tax competition model and to...

Purpose The purpose of this study is to empirically identify incentives that drive resource shifting by US pharmaceutical firms to comparatively low-tax jurisdictions. Design/methodology/approach Using a panel of publicly listed companies, we investigate whether resource shifting is facilitated...

Abstract The conventional view holds that domestic labor, not domestic capital, bears most of the long-run burden of a corporate income tax in an open economy due to the ability of capital to move across borders. This result assumes that domestic and foreign products (as well as investments) are...

Purpose The purpose of this study is to investigate the relationship between tax evasion and certain demographic factors such as location, engagement of tax agent, size and type of small- and medium-sized enterprises (SMEs) industry in Malaysia. Design/methodology/approach In this study, using...

Purpose The purpose of this paper is to investigate how Chinese firms’ ownership structure is related to their effective tax rate. The People’s Republic of China provides an interesting environment to examine the corporate income tax. Government has significant ownership stakes in the...

Economic growth has become an important study growth matter. By economists economic growth is defined as capital stock growth, rising per capita GDP, increased access for manufactured goods and services for consumption and so on. In economic growth affect several factors and policies....

This article describes how foreign direct investments (FDI) is one of the most important forces that influences the global economy. Along the last two and a half decades, the motivations and the field of interest of multinational enterprises (MNEs) mutated to new forms under the influence of...

Political risk insurance is an insurance product sold to firms as a means to protect them against some political risks associated with investing abroad. This paper argues that political risk insurance may in fact be a source of political risk. Looking at cases in the Asia-Pacific region, we...

Abstract We develop a political economy model of trade policy using a sector specific factor model with international capital mobility, looking for the relationship between protection and the composition of foreign capital. As foreign direct investment is remunerated at the marginal productivity...

Abstract The large empirical literature on the relationship between Foreign Direct Investment (FDI) and economic growth has produced mixed results. Despite the ambiguous evidence on the benefits of FDI, investment promotion has become an active area of policy and a growing number of nations are...