This study suggests a model for the agglomerative behaviour of MNEs with local competitors. Relying on foreign MNEs’ spatial distribution across 686 Italian Local Labor Systems, we find that MNEs’ locational behaviour is influenced by (i) informational externalities, giving rise to...

The goals of transfer pricing are to assign a monetary value to a transfer and to minimize the taxes paid by a company as whole. However, because a single company can now have operations literally around the world, transfer pricing has become a very complicated, costly, and lucrative business...

In this particular paper, an attempt has been made to show the competitive behaviour of small capital retailers and large capital retailers theoretically (including single brand and multi-brand both domestic and/or foreign). The objective of this paper is to search the real behaviour of market...

A key motivation underlying the October 2020 OECD Pillar One and Pillar Two Blueprints is the goal of reducing tax complexity for taxpayers and tax authorities. In this article, we assess the tax complexity of the Blueprints relative to the 2017 OECD Transfer Pricing Guidelines (TPG) and the...

Pillar One Amount A proposes to reallocate a portion of the global profit of multinational enterprises (MNEs) from their Residence (home) and Source (host) jurisdictions to their Market (sales destination) jurisdictions. The reallocation creates a new taxing right for Market jurisdictions,...

We develop an assignment theory to analyze the volume and composition of foreign direct investment (FDI). Firms conduct FDI by either engaging in greenfield investment or in cross-border acquisitions. Cross-border acquisitions involve firms trading heterogeneous corporate assets to exploit...

We analyze the influence of endogenous competitiveness on multinational activity. Competitiveness is endogenized by assuming that firms differ on R&D commitment power, i.e.: some firms are leaders in R&D. We show that firms with higher commitment power tend to invest more in R&D and consequently...

This paper theoretically and empirically explores how firms' heterogeneous characteristics, in particular their competitiveness in the product market and their productivity, affect their domestic and cross-border corporate asset transactions. I find that firms participate in the domestic and...

This paper develops a model of a monopolistically competitive industry with extensive and intensive business investment and shows how these margins respond to changes in average and marginal corporate tax rates. Intensive investment refers to the size of a firm's capital stock. Extensive...