Multinational corporations can shift income into low-tax countries through transfer pricing and debt financing. While most developed countries use thin capitalization rules to limit the extent to which a subsidiary can be financed with internal debt, a number of developing countries do not. In...

This paper examines how an emerging economy's institutional context motivates different forms of MNE entrepreneurship, which, subsequently, leads either to economic development or economic growth. To do so, the paper distinguishes emerging economies' institutional environment into a state of...