International Taxation and Multinational Firm Location Decisions

By Salvador Barrios, Harry Huizinga, Luc Laeven, G. Nicodème. Social Science Research Network, 2012

289 citations recorded by the source corpus.

Using a large international firm-level data set, we examine the separate effects of host and additional parent country taxation on the location decisions of multinational firms. Both types of taxation are estimated to have a negative impact on the location of new foreign subsidiaries. The impact of parent country taxation is estimated to be sizeable consistent with its international discriminatory nature. Our results show that international double taxation by the parent country – despite the general possibility of deferral of taxation until income repatriation – is instrumental in shaping the structure of multinational enterprise.

Subfields: Accounting, Economics and Econometrics, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/bf7c3dceebec53c8f1bde64e1dfe34b29993b7c4

Citations in the corpus

• Intellectual property box regimes: effective tax rates and tax policy considerations (2013, unknown): “Barrios et al. (2012) provides recent evidence for European firms.”