Explaining the Variation in Empirical Estimates of Tax Elasticities of Foreign Direct Investment
2005-12-06
Research Paper
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This study aims to explain the variation in empirical estimates in the literature on the elasticity of foreign direct investment with respect to company tax levels. To that end, we extend the meta analysis of De Mooij and Ederveen (2003) by considering an alternative classification of the literature, including new studies that have recently become available, and by paying more systematic attention to various control variables in primary studies. We find that the type of capital data and tax data exert a systematic impact on reported elasticities. Also controlling for openness and agglomeration tendencies appears to significantly affect the elasticity values.
Keywords
Classifications using
Journal of Economic Literature (JEL) Classification System
- H2 : Taxation, Subsidies, and Revenue
- E2 : Consumption, Saving, Production, Employment, and Investment
- F2 : International Factor Movements and International Business
Automatically Extracted Terms
- study
- tax rates
- elasticitie
- investment
- country
- capital
- result
- tax rate
- literature
- location
- regression
- value
- elasticity
- effect
- meta analysis
- impact
- taxation
- semi-elasticitie
- credit
- capital data
