International taxation and multinational firm decisions

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

Research output: Contribution to journalArticleScientificpeer-review

Abstract

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
Volume96
Issue number11-12
DOIs
Publication statusPublished - 2012

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Multinational firms
International taxation
Taxation
Firm-level data
Foreign subsidiaries
Multinational enterprises
Location decision
Double taxation
Income taxation
Repatriation

Cite this

Barrios, S. ; Huizinga, H.P. ; Laeven, L. ; Nicodeme, G. / International taxation and multinational firm decisions. In: Journal of Public Economics. 2012 ; Vol. 96, No. 11-12. pp. 946-958.
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International taxation and multinational firm decisions. / Barrios, S.; Huizinga, H.P.; Laeven, L.; Nicodeme, G.

In: Journal of Public Economics, Vol. 96, No. 11-12, 2012, p. 946-958.

Research output: Contribution to journalArticleScientificpeer-review

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