While governments have multiple tax instruments available to them, studies of the effect of tax policy on the locational decisions of multinationals typically focus exclusively on host country corporate income tax rates and their interaction with home country tax rules. This paper examines the...

While governments have multiple tax instruments available to them, studies of the effect of tax policy on the locational decisions of multinationals typically focus exclusively on host country corporate income tax rates and their interaction with home country tax rules. This paper examines the...

We develop a pair of industry-specific partial equilibrium models of trade policy thatestimate how changes in tariff rates affect FDI. The models focus on two differenttypes of FDI. Tariff-jumping FDI is likely to expand with a large increase in the tariff ratein export markets, while export...