Impact of Effective Tax Rates and Its Components on Foreign Direct Investment - The Case of the EU Member Countries

Bibliographic Data

ID6109439
AuthorsLenka Janíčková (0009-0000-5059-8272, VSB - Technical University of Ostrava), Veronika Baranová (0000-0001-5039-4317, VSB - Technical University of Ostrava)
Year2013
Volume61
Issue2
Pages209-228
Publication date2013-04-01
Open AccessYes
TypeARTICLE
VenuePolitická ekonomie (JOURNAL)
Journal identifiersISSN: 0032-3233 • E-ISSN: 2336-8225
PublisherPrague University of Economics and Business (PUBLISHER • CZ)
DOI10.18267/j.polek.895
OpenAlexW2276982107
LanguageEN
Citations received2
References cited27

The empirical literature generally accepts the influence of corporate taxes on the investment decision of the multinationalities. The most papers usually consider more aspect of that tax then only statutory corporate tax rate. Using annual time series data for the period 1998-2011 this paper examines the influence of EMTR and EATR including their components on the foreign direct investments in the EU Member states. The main aim of the paper is to evaluate which of the selected types of effective tax rates explains the investment decisions of the multinationalities the best. The results show that the commonly used indicators of effective tax burden are not the best option for foreign direct investment (FDI) explanation in the investigated model. Perhaps the best indicator for evaluating dependencies between explanatory variables and FDI are the average and marginal effective tax rate from industrial buildings

Ad valorem tax · Business · Corporate Tax · Direct tax · Economics · Eu countries · European union · Foreign direct investment · Indirect tax · International economics · Investment (military) · Macroeconomics · Monetary economics · Public economics · Statutory law · Tax avoidance · Tax policy · Tax rate · Tax reform · Value-added tax · Corporate Taxation and Avoidance · Economic and Fiscal Studies · Fiscal Policy and Economic Growth

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