Unité mixte de recherche 7235

Tax Competition and Foreign Direct Investment: assessing the role of market potential and trade costs in a Footloose Capital framework

Vincent Delbecque

[en]This paper investigates the impact of the corporate income tax on the geographical distribution of French firms Foreign Direct Investment port- folio across 26 European countries. The empirical assessment is based on Baldwin (1999) new economic geography model in which we focus on the location of firms with respect to level of taxation. In this model, the magnitude of the impact of taxation on location decision partly depends on the market size and the level of trade costs. Indeed, firms may not only seek lower production costs but better market access and market opportunity when investing abroad. Through panel data regressions, we find a negative impact of the corporate income tax rate on Foreign Direct Investment. We also find that trade costs between source and host coun- try increases Foreign Direct Investment. In advanced specifications we show that increasing trade costs reduce the impact of tax level on capital location. [/en]

AGENDA

jeudi 19 mai 2022

Lunch

Christophe Blot

Are all central bank asset purchases the same?

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Law, Institutions and Economics in Nanterre (LIEN)

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The Value of Your Data: Privacy and Personal Data Exchange Networks

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Law, Institutions and Economics in Nanterre (LIEN)

Antoine Dubus (ETH Zurich)

Salle G110

Data Driven Mergers and Acquisitions with Information Synergies

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Series of Webinars on Economics of Environment, Energy and Transport (SWEEET)

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TBA

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Lunch

Rémi Generoso

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jeudi 9 juin 2022

Groupe de travail « Intelligence artificielle »

Hugo Le Picard (IFRI)

Salle G614B

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Series of Webinars on Economics of Environment, Energy and Transport (SWEEET)

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TBA

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Économies du monde musulman

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Natural and Regulatory Underlying Factors of Food Dependency in Algeria

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