{"title":"Domestic Tax and Outward Foreign Direct Investment: Evidence from Corporate Tax Unification in China","authors":"Haichao Fan, Yu Liu, Suhua Tian, Xuan Wang","doi":"10.2139/ssrn.3259051","DOIUrl":"https://doi.org/10.2139/ssrn.3259051","url":null,"abstract":"We study the effect of domestic tax on firms’ outward foreign direct investment (OFDI) decisions. We exploit a policy change in China that unifies corporate income tax rates through raising foreign firms’ but reducing domestic firms’ tax rates. Using a difference-in-differences estimator that compares the OFDI of foreign and domestic firms before and after the tax unification, we find that a higher domestic corporate income tax rate increased firms’ OFDI but reduced firms’ domestic capital in China and exports from China, which reflect capital relocation from China to overseas countries. This “capital relocation” effect of the domestic tax increase is stronger for firms of higher productivity.","PeriodicalId":388027,"journal":{"name":"PSN: Foreign Direct Investment (International) (Topic)","volume":"423 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-03-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131703402","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Stock Market Liberalizations and Export Dynamics","authors":"Mélise Jaud, M. Kukenova, Martin Strieborny","doi":"10.2139/ssrn.3184754","DOIUrl":"https://doi.org/10.2139/ssrn.3184754","url":null,"abstract":"We find that granting foreign investors access to domestic stock markets facilitate efficiency-enhancing product specialization in the recipient countries. After countries liberalize their stock markets and allow foreign investors to acquire equity stakes in domestic firms, products that do not correspond to the liberalizing countries' comparative advantage disappear disproportionately faster from their export portfolios. At the same time, the overall long-term export performance of the liberalizing countries improves. Domestic stock market development does not play the same disciplining role in forcing termination of inefficient exports, suggesting a unique role for foreign investors in improving resource allocation in the real economy.","PeriodicalId":388027,"journal":{"name":"PSN: Foreign Direct Investment (International) (Topic)","volume":"3 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-03-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125258987","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Enterprises Heterogeneity, Bilateral Investment Treaty (BIT) and the Determinants of Chinese Firms’ Outward Foreign Direct Investment (OFDI)","authors":"Jinjing Zhao, Jongchul Lee","doi":"10.16980/jitc.15.1.201902.97","DOIUrl":"https://doi.org/10.16980/jitc.15.1.201902.97","url":null,"abstract":"This paper analyzed Chinese enterprises’ outward foreign direct investment (OFDI) from the perspectives of Bilateral Investment Treaties (BIT) and...","PeriodicalId":388027,"journal":{"name":"PSN: Foreign Direct Investment (International) (Topic)","volume":"45 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-02-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125357233","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"An Fdi-Driven Approach to Measuring the Scale and Economic Impact of BEPS","authors":"R. Bolwijn, B. Casella, Davide Rigo","doi":"10.18356/C4F9FD3C-EN","DOIUrl":"https://doi.org/10.18356/C4F9FD3C-EN","url":null,"abstract":"This paper explores the link between foreign direct investment (FDI) and the BEPS (base erosion and profit shifting) practices of multinationals (MNEs). It puts the spotlight on the outsize role of offshore investment hubs as major players in global corporate investment, a role that is largely due to MNEs’ tax planning, although other factors contribute. The paper shows that tax avoidance practices enabled by FDI through offshore hubs are responsible for significant leakage of development financing resources. In policy terms, these findings call for enhanced cooperation and synergies between international tax and investment policymaking.","PeriodicalId":388027,"journal":{"name":"PSN: Foreign Direct Investment (International) (Topic)","volume":"64 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-09-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123486665","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Foreign Direct Investment in Canada – The Case for Further Openness and Transparency","authors":"Daniel Schwanen","doi":"10.2139/ssrn.3220442","DOIUrl":"https://doi.org/10.2139/ssrn.3220442","url":null,"abstract":"Canada’s performance in attracting foreign direct investment faces serious headwinds, according to a new report from the C.D. Howe Institute. In “Foreign Direct Investment in Canada – The Case for Further Openness and Transparency” author Daniel Schwanen makes a case for more open and transparent foreign investment rules in Canada.","PeriodicalId":388027,"journal":{"name":"PSN: Foreign Direct Investment (International) (Topic)","volume":"3 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126775110","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Location Decisions of Non‐Bank Financial Foreign Direct Investment: Firm‐Level Evidence from Europe","authors":"Ronald B. Davies, Neill Killeen","doi":"10.1111/roie.12336","DOIUrl":"https://doi.org/10.1111/roie.12336","url":null,"abstract":"The non-bank financial sector in the euro area has more than doubled in size over the last decade reflecting the substantial growth in shadow banking activities. However, a large proportion of the non-bank financial sector remains unmapped as granular balance sheet information is not available for almost half of the sector. Motivated by these data gaps and employing firm-level data, this paper examines the location decisions of newly incorporated foreign affiliates in the non-bank financial sector across 27 European countries over the period 2004 to 2012. The probability of a country being chosen as the location for a new foreign affiliate is found to be negatively associated with higher corporate tax rates and geographic distance but increases with the size and financial development of the host country. The financial regulatory regime in the host country and gravity related controls such as the home and host country sharing a common legal system, language, border and currency are also found to impact the likelihood of non-bank financial FDI.","PeriodicalId":388027,"journal":{"name":"PSN: Foreign Direct Investment (International) (Topic)","volume":"18 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132535856","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Taking Local Expectations Seriously: A Fresh Start for Foreign Investment Governance?","authors":"Nicolás M. Perrone","doi":"10.1007/978-3-030-32512-1_5","DOIUrl":"https://doi.org/10.1007/978-3-030-32512-1_5","url":null,"abstract":"","PeriodicalId":388027,"journal":{"name":"PSN: Foreign Direct Investment (International) (Topic)","volume":"38 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-03-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123838332","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Christian Fons-Rosen, S. Kalemli‐Ozcan, Bent E. Sørensen, Carolina Villegas-Sánchez, V. Volosovych
{"title":"Foreign Investment and Domestic Productivity: Identifying Knowledge Spillovers and Competition Effects","authors":"Christian Fons-Rosen, S. Kalemli‐Ozcan, Bent E. Sørensen, Carolina Villegas-Sánchez, V. Volosovych","doi":"10.3386/W23643","DOIUrl":"https://doi.org/10.3386/W23643","url":null,"abstract":"We study the impact of FDI on the productivity of host-country firms. FDI has positive spillovers only when foreign and domestic firms use similar technologies. Channeling FDI to sectors where firms share similar technology would significantly increase productivity spillovers from FDI. We show that inventor mobility across sectors is a key channel of technology transfer. To deal with endogeneity concerns we control for sectoral productivity growth, construct a Bartik-style instrument based on the productivity growth of neighboring countries, and exploit differences in knowledge flows across sectors captured by an asymmetric patent citation matrix.","PeriodicalId":388027,"journal":{"name":"PSN: Foreign Direct Investment (International) (Topic)","volume":"165 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123002421","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Influence of FDI on an Economy As Overall in Vietnam (2006 – 2015)","authors":"Minh T. N. Nguyen","doi":"10.2139/ssrn.2990279","DOIUrl":"https://doi.org/10.2139/ssrn.2990279","url":null,"abstract":"Over a decade, the Foreign Direct Investment (FDI) has played a crucial role in most countries especially developing countries, especially Vietnam in terms of economics’ performance. Many scholars and economists have believed that Foreign Direct Investment will provide a benefit to the host countries. Consequently, this essay aims to examine the influence of FDI on particular economics' indicators those are employment or job creation, unemployment, international trade as well as stock market performance. With the regression model, this essay has found out that FDI assists the country's economy except the export. While the government also imposed the favored policies comprised of eliminating the import tariff to attract more foreign investment since the government has believed that the foreign investment will assist them to achieve the objective, which is the transition to be an export-led for a labor-intensive manufacturer. Fortunately, since 1988 Vietnam has become one of the world largest labor-intensive manufacturers. This finding shows that FID and economic growth have a strong relationship with each other with the factors directly related which will be mentioned below.","PeriodicalId":388027,"journal":{"name":"PSN: Foreign Direct Investment (International) (Topic)","volume":"362 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-06-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124554001","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"World FDI, An ‘Unequal Partners’ and ‘Concentric Circles’ Design Part XII. The Short Story of World FDI in the 1990-2015 Year Interval","authors":"D. Andrei, L. Andrei","doi":"10.2139/ssrn.2894952","DOIUrl":"https://doi.org/10.2139/ssrn.2894952","url":null,"abstract":"This paper is supposed to end this given series to focus on FDI & DIA, as unitary fluid substance world owned and it is the 12th and last one. Now this is also leaving the country group/region analysis for the world-wide observing, plus here searching for comprehensive conclusions. So, see below some international direct investments classifying and revealed types ranking by amounts invested, plus corresponding dynamics. The paper series’ conclusions will come back to the above general title significance.","PeriodicalId":388027,"journal":{"name":"PSN: Foreign Direct Investment (International) (Topic)","volume":"33 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-01-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122557457","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}