The determinants of tax haven FDI

Jones, Chris and Temouri, Yama (2016). The determinants of tax haven FDI. Journal of World Business, 51 (2), pp. 237-250.

Abstract

This paper examines the determinants of a multinational enterprise’s (MNEs) decision to set up tax haven subsidiaries. We adapt the Firm-specific advantage–Country-specific advantage (FSA–CSA) framework and construct a number of empirically testable hypotheses. The analysis is based on a database covering 14,209 MNEs in twelve OECD countries. We find that the variety of capitalism of a MNEs home location and the level of technological intensity has a strong impact on this decision. We also find that the home country corporate tax rate has a minimal impact. This suggests that corporate tax liberalisation is unlikely to deter MNEs from undertaking this activity.

Publication DOI: https://doi.org/10.1016/j.jwb.2015.09.001
Divisions: Aston Business School > Economics, Finance & Entrepreneurship
Additional Information: © 2015 The Authors. Published by Elsevier Inc. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
Uncontrolled Keywords: theory of FDI and the MNE,varieties of capitalism,tax havens,probit regression,corporate taxation,Business and International Management,Marketing,Finance
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Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
Published Date: 2016-02
Authors: Jones, Chris ( 0000-0003-1115-6409)
Temouri, Yama

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