Gresik, Thomas A.; Schindler, Dirk; Schjelderup, Guttorm - 2015
internal debt, a number of developing countries do not. In this paper, we analyze the effect on FDI and host country welfare of … thin capitalization rules when multinationals can also shift income via transfer prices. We show that while permissive thin … capitalization limits may be needed in developing countries to attract FDI, the amount of debt financing allowed by the permissive …