International taxation and multinational firm decisions

S. Barrios, H.P. Huizinga, L. Laeven, G. Nicodeme

Research output: Contribution to journalArticleScientificpeer-review

84 Citations (Scopus)


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.
Original languageEnglish
Pages (from-to)946-958
JournalJournal of Public Economics
Issue number11-12
Publication statusPublished - 2012


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