Taxation and business environment as drivers of foreign direct investment in OECD countries

Hajkova, Dana; Nicoletti, Giuseppe; Vartia, Laura; Yoo, Kwang-Yeol

doi:10.1787/eco_studies-v2006-art8-en

Cited by 30 publications

(32 citation statements)

References 43 publications

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“…In this sense, our results are in line with earlier work by e.g. Hajkova et al (2006). Significant positive effects on a country's access to global technology also follow from an increase in openness, i.e.…”

Section: Indirect Effects Of Fiscal Policysupporting

confidence: 93%

Fiscal policy and TFP in the OECD: measuring direct and indirect effects

2014

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Statement of purpose:The purpose of these working papers is to promote the circulation of research results (Research Series) and analytical studies (Documents Series) made within the National Bank of Belgium or presented by external economists in seminars, conferences and conventions organised by the Bank. The aim is therefore to provide a platform for discussion. The opinions expressed are strictly those of the authors and do not necessarily reflect the views of the National Bank of Belgium. JEL classification: C31, C33, E62, O38 Orders

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Section: Indirect Effects Of Fiscal Policysupporting

confidence: 93%

Fiscal policy and TFP in the OECD: measuring direct and indirect effects

2014

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“…affecting firms' location choice. For instance, their influence appears relatively small in comparison with labour taxes (Hajkova et al, 2006).…”

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confidence: 98%

“…Indeed, a recent OECD study found that tax planning reduces the effect of corporate taxation on investment of taxplanning MNEs (OECD, 2015c). There is also a vast literature, including past OECD work, suggesting an adverse effect of the host country corporate tax rate on foreign investment (Hajkova et al, 2006;Feld and Heckemeyer, 2011). But corporate taxes are only one among many factors (e.g.…”

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confidence: 99%

Public Finance, Economic Growth and Inequality

Johansson¹

2016

OECD Economics Department Working Papers

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JT03405922Complete document available on OLIS in its original format This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. ECO/WKP(2016)70 Unclassified English -Or. English ECO/WKP(2016)70 2 OECD Working Papers should not be reported as representing the official views of the OECD or of its member countries. The opinions expressed and arguments employed are those of the author(s).Working Papers describe preliminary results or research in progress by the author(s) and are published to stimulate discussion on a broad range of issues on which the OECD works.Comments on Working Papers are welcomed, and may be sent to OECD Economics Department, 2 rue André Pascal, 75775 Paris Cedex 16, France, or by e-mail to eco.contact@oecd.org. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law.Latvia was not an OECD Member at the time of preparation of this publication. Accordingly, Latvia does not appear in the list of OECD Members and is not included in the zone aggregates. © OECD (2016)You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgment of OECD as source and copyright owner is given. All requests for commercial use and translation rights should be submitted to rights@oecd.org ECO/WKP(2016)70 3 ABSTRACT/RÉSUMÉPublic finance, economic growth and inequality: A survey of the evidence This paper reviews the key issues concerning the impact of public spending and taxation on long-run growth and inequality and takes stock of existing theoretical and empirical studies. Overall, the evidence highlights that the size of the government matters for long-term growth as a too large government may undermine growth through the cost of financing public spending. A reallocation of public spending towards infrastructure and education would raise income in the long run, whereas increasing social welfare spending can reduce inequality as such spending increases redistribution and risk sharing. Similarly, the available evidence also supports the hypothesis that some taxes are more distortionary than others, with income taxes found to be more harmful for growth than consumption and property taxes. However, a tax shift from income towards consumption taxes has equity implications, since income taxes are general...

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“…Fiscal Policy and Growth in Developing Asia | 11 Corporate income taxes are expected to be harmful to growth because they discourage investment in capital and productivity improvements in addition to reducing foreign direct investment (Arnold et al 2011, Myles 2009, and Hajkova et al 2006). Owing to their progressive nature, personal income taxes can discourage growth more per unit of tax revenue than consumption taxes, which are generally flat.…”

Section: Quantifying the Impact On Growth Of Fiscal Policy Changesmentioning

confidence: 99%

Fiscal Policy and Growth in Developing Asia

et al. 2014

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In this paper we empirically explore the relationship between fiscal policy and economic growth in developing Asia. The region's overall level of taxes and government spending are substantially lower than those prevailing in advanced economies. Nevertheless, there are conceptual grounds why fiscal policy, including the composition of taxes and government spending, can have a significant effect on growth, as our empirical analysis shows. In line with economic theory, property taxes have a more benign impact on growth than direct taxes, and spending more on education has a sizable positive impact on growth. The views expressed in this paper are those of the author and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent.ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use.By making any designation of or reference to a particular territory or geographic area, or by using the term "country" in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area. Note: In this publication, "$" refers to US dollars.The ADB Economics Working Paper Series is a forum for stimulating discussion and eliciting feedback on ongoing and recently completed research and policy studies undertaken by the Asian Development Bank (ADB) staff, consultants, or resource persons. The series deals with key economic and development problems, particularly those facing the Asia and Pacific region; as well as conceptual, analytical, or methodological issues relating to project/program economic analysis, and statistical data and measurement. The series aims to enhance the knowledge on Asia's development and policy challenges; strengthen analytical rigor and quality of ADB's country partnership strategies, and its subregional and country operations; and improve the quality and availability of statistical data and development indicators for monitoring development effectiveness.

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Taxation and business environment as drivers of foreign direct investment in OECD countries

Cited by 30 publications

References 43 publications

Fiscal policy and TFP in the OECD: measuring direct and indirect effects

Fiscal policy and TFP in the OECD: measuring direct and indirect effects

Public Finance, Economic Growth and Inequality

Fiscal Policy and Growth in Developing Asia

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