PRODUCTIVITY SHOCKS, FOREIGN DIRECT INVESTMENT, AND CAPITAL TAXES
Ekonomika
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Title |
PRODUCTIVITY SHOCKS, FOREIGN DIRECT INVESTMENT, AND CAPITAL TAXES
PRODUCTIVITY SHOCKS, FOREIGN DIRECT INVESTMENT, AND CAPITAL TAXES |
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Creator |
Zirgulis, Aras; ISM University, Vilnius
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Subject |
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FDI, productivity shock, capital taxes, tax competition — — FDI, productivity shock, capital taxes, tax competition — |
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Description |
The present study deals with the effect that productivity and capital taxes have on foreign direct investment through a panel consisting of 41 countries utilising the GMM system on a dynamic spatial model. Evidence reveals that an increase in the domestic capital tax rate leads to less FDI inflows, and higher levels of domestic productivity growth lead to less FDI inflows. Foreign competition did not have a significant effect on domestic FDI inflows.
The present study deals with the effect that productivity and capital taxes have on foreign direct investment through a panel consisting of 41 countries utilising the GMM system on a dynamic spatial model. Evidence reveals that an increase in the domestic capital tax rate leads to less FDI inflows, and higher levels of domestic productivity growth lead to less FDI inflows. Foreign competition did not have a significant effect on domestic FDI inflows. |
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Publisher |
Vilniaus universiteto Ekonomikos fakultetas / Vilnius University Faculty of Economics
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Contributor |
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Date |
2015-01-01
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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Format |
application/pdf
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Identifier |
http://www.zurnalai.vu.lt/ekonomika/article/view/5040
10.15388/Ekon.2014.93.5040 |
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Source |
Ekonomika; Ekonomika 2014 93(4); 58-71
1392-1258 1392-1258 |
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Language |
lit
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Relation |
http://www.zurnalai.vu.lt/ekonomika/article/view/5040/3303
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Rights |
Autorinės teisės (c) 2015 Ekonomika
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