The Disappearing Tax Base: Is Foreign Direct Investment (FDI) Eroding Corporate Income Taxes?
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Bibliographic Details
Main Author: Gropp, Reint (Author)
Format: Electronic eBook
Language:English
Published: Washington, D.C International Monetary Fund 2000
Series:IMF Working Papers Working Paper No. 00/173
Links:http://elibrary.imf.org/view/IMF001/06887-9781451858624/06887-9781451858624/06887-9781451858624.xml
http://elibrary.imf.org/view/IMF001/06887-9781451858624/06887-9781451858624/06887-9781451858624.xml
http://elibrary.imf.org/view/IMF001/06887-9781451858624/06887-9781451858624/06887-9781451858624.xml
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http://elibrary.imf.org/view/IMF001/06887-9781451858624/06887-9781451858624/06887-9781451858624.xml
http://elibrary.imf.org/view/IMF001/06887-9781451858624/06887-9781451858624/06887-9781451858624.xml
http://elibrary.imf.org/view/IMF001/06887-9781451858624/06887-9781451858624/06887-9781451858624.xml
http://elibrary.imf.org/view/IMF001/06887-9781451858624/06887-9781451858624/06887-9781451858624.xml
http://elibrary.imf.org/view/IMF001/06887-9781451858624/06887-9781451858624/06887-9781451858624.xml
http://elibrary.imf.org/view/IMF001/06887-9781451858624/06887-9781451858624/06887-9781451858624.xml
http://elibrary.imf.org/view/IMF001/06887-9781451858624/06887-9781451858624/06887-9781451858624.xml
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http://elibrary.imf.org/view/IMF001/06887-9781451858624/06887-9781451858624/06887-9781451858624.xml
http://elibrary.imf.org/view/IMF001/06887-9781451858624/06887-9781451858624/06887-9781451858624.xml
http://elibrary.imf.org/view/IMF001/06887-9781451858624/06887-9781451858624/06887-9781451858624.xml
http://elibrary.imf.org/view/IMF001/06887-9781451858624/06887-9781451858624/06887-9781451858624.xml
http://elibrary.imf.org/view/IMF001/06887-9781451858624/06887-9781451858624/06887-9781451858624.xml
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http://elibrary.imf.org/view/IMF001/06887-9781451858624/06887-9781451858624/06887-9781451858624.xml
Abstract:This paper analyzes the link between FDI, corporate taxation, and corporate tax revenues. We find strong evidence that FDI in (out) flows are affected by tax regimes in the host (home) countries and FDI flows in turn affect the corporate tax base. Simulations of European Union (EU) harmonization (isolating the revenue effect of FDI on the tax base from direct effects through the rate harmonization) suggest that high (low) tax countries would gain (lose) revenue from harmonization; these effects may be substantial. Our results also suggest that EU tax harmonization would significantly affect the net FDI position of some countries
Physical Description:1 Online-Ressource (39 p)
ISBN:1451858620
9781451858624