OECD Economic Studies

Discontinued
Frequency :
Semiannual
ISSN :
1609-7491 (online)
ISSN :
0255-0822 (print)
DOI :
10.1787/16097491
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OECD Economic Studies is the twice-yearly journal of the OECD Economics Department. It features articles in the area of applied macroeconomics and statistical analysis, generally with an international or cross-country dimension. Articles are derived from work of the Organization’s intergovernmental committees, including areas of work outside the Economics Department’s focus. Now published as a part of the OECD Journal.

Also available in: French
Article
 

Taxation and business environment as drivers of foreign direct investment in OECD countries You do not have access to this content

 
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Author(s):
Dana Hajkova, Giuseppe Nicoletti, Laura Vartia, Kwang-Yeol Yoo
Publication Date
06 Sep 2007
Pages
8
Bibliographic information
No.:
8,
Volume:
2006,
Issue:
2
Pages
7–38
DOI
10.1787/eco_studies-v2006-art8-en

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How important are differences in corporate taxation for the investment decisions of multinational enterprises (MNEs)? Over the past decade, interest in this issue has been growing in parallel with the increasing mobility of capital and internationalisation of businesses. Standard models of the MNEs predict that corporate taxation can influence foreign direct investment (FDI) by creating a wedge between the pre- and post-tax returns on investment. The relevant tax wedge, however, depends on whether MNEs’ investment is incremental or involves the creation of entirely new plants.
Also available in: French