THE IMPACT OF FLAT TAX RATES ON FOREIGN DIRECT INVESTMENT | Zendy

Berna Hızarcı Beşer | Zendy; Mustafa Kemal Beşer | Zendy

AI Assistant Blog Pricing

Home ZAIA Blog

Open Access

THE IMPACT OF FLAT TAX RATES ON FOREIGN DIRECT INVESTMENT

Author(s) -

Berna Hızarcı Beşer,

Mustafa Kemal Beşer

Publication year - 2018

Publication title -

m u iktisadi ve idari bilimler dergisi

Language(s) - English

Resource type - Journals

ISSN - 1300-7262

DOI - 10.14780/muiibd.434909

Subject(s) - foreign direct investment , economics , tax competition , monetary economics , corporate tax , international economics , indirect tax , tax rate , value added tax , openness to experience , tax reform , tax credit , tax avoidance , macroeconomics , public economics , psychology , social psychology

Main aim of this paper is to investigate the effect of corporate income tax rates on foreign direct investment (FDI) in the countries which has flat tax application in the pattern of long-run relationship of 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 the countries which have applied flat tax reforms and smaller corporate income tax rates in order to focus and 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 negative impact on FDI.

The content you want is available to Zendy users.

Already have an account? Click here to sign in.

Having issues? You can contact us here

Accelerating Research