Desai, Mihir A.; Foley, C. Fritz; Hines Jr., James R. - 2021
This paper considers the effect of taxation on the location of foreign direct investment (FDI) and taxable income …-owned foreign affiliates across ownership forms and regions. Ten percent higher tax rates are associated with 5.0 percent lower FDI … parent company and level of FDI. Tax effects are particularly strong within Europe, where ten percent higher tax rates are …