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Journals / Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi / 2018 / Cilt: 40 - Sayı: 1

THE IMPACT OF FLAT TAX RATES ON FOREIGN DIRECT INVESTMENT

Berna HIZARCI BEŞER
Mustafa Kemal BEŞER
Pages
1–13
Publication Date
2018-06-27
DOI
—
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

For the empirical analysis we use annual data for 1990-2014 for thecountries which have applied flat tax reforms and smaller corporate income tax rates in order to focusand draw out the effect of tax rate instrument on capital movements in the point of tax competition.According to panel regression and cointegration results, corporate tax rate has significant and negativeimpact on FDI.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:Main aim of this paper is to investigate the effect of corporate income tax rates on foreign directinvestment (FDI) in the countries which has flat tax application in the pattern of long-run relationshipof FDI and its determinants which are known as market size, labor cost, trade barrier, growth rate,openness, trade deficit, and tax rates.
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Key Findings & Data:Main aim of this paper is to investigate the effect of corporate income tax rates on foreign directinvestment (FDI) in the countries which has flat tax application in the pattern of long-run relationshipof FDI and its determinants which are known as market size, labor cost, trade barrier, growth rate,openness, trade deficit, and tax rates.
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Conclusion & Impact:For the empirical analysis we use annual data for 1990-2014 for thecountries which have applied flat tax reforms and smaller corporate income tax rates in order to focusand draw out the effect of tax rate instrument on capital movements in the point of tax competition.According to panel regression and cointegration results, corporate tax rate has significant and negativeimpact on FDI.
🔬Design:Research Article
📍Scope:2014 Verileri
⚙️Variables:Flat Tax · Tax Competition · Foreign Direct Investment

Abstract

Main aim of this paper is to investigate the effect of corporate income tax rates on foreign directinvestment (FDI) in the countries which has flat tax application in the pattern of long-run relationshipof FDI and its determinants which are known as market size, labor cost, trade barrier, growth rate,openness, trade deficit, and tax rates. For the empirical analysis we use annual data for 1990-2014 for thecountries which have applied flat tax reforms and smaller corporate income tax rates in order to focusand draw out the effect of tax rate instrument on capital movements in the point of tax competition.According to panel regression and cointegration results, corporate tax rate has significant and negativeimpact on FDI.

Özet

Main aim of this paper is to investigate the effect of corporate income tax rates on foreign directinvestment (FDI) in the countries which has flat tax application in the pattern of long-run relationshipof FDI and its determinants which are known as market size, labor cost, trade barrier, growth rate,openness, trade deficit, and tax rates. For the empirical analysis we use annual data for 1990-2014 for thecountries which have applied flat tax reforms and smaller corporate income tax rates in order to focusand draw out the effect of tax rate instrument on capital movements in the point of tax competition.According to panel regression and cointegration results, corporate tax rate has significant and negativeimpact on FDI.

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Cite This Article

BEŞER, B. H., BEŞER, M. K. (2018). THE IMPACT OF FLAT TAX RATES ON FOREIGN DIRECT INVESTMENT. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi, Cilt: 40 - Sayı: 1, 1–13. https://ajindex.com/articles/6361

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