The increase in international capital mobility over the past two decades has put pressure on the tax treatment of corporate equity income. Corporate-level taxes distort investment flows across locations and create opportunities for tax avoidance by shifting income across jurisdictions. Outward...

This paper analyzes effects of the corporation tax rates of countries on firms f location selections using the transfer pricing system. Reduction of transportation costs makes firms f production activities expand to across international borders. This expansion incurs harsh price competition...