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:	College of Business and Social Sciences > 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
Publication ISSN:	1878-5573
Last Modified:	11 Feb 2025 08:13
Date Deposited:	26 Oct 2015 14:15
Full Text Link:
Related URLs:	http://www.scop ... tnerID=8YFLogxK (Scopus URL)
PURE Output Type:	Article
Published Date:	2016-02
Published Online Date:	2015-09-26
Accepted Date:	2015-09-10
Submitted Date:	2015-01-22
Authors:	Jones, Chris ( 0000-0003-1115-6409) Temouri, Yama ( 0000-0003-3014-258X)