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Tax competition and foreign direct investments. Is there a connection?

Author

Listed:
  • Liliana Donath
  • Mariana Slavin

    (Faculty of Economics and Business Administration, West University of Timisoara)

Abstract
The issue of tax competition has fuelled a lot of interest and debates among theoreticians as well as practitioners during the last decades. The intense financial and labour flows due to globalisation has led to a “race to the bottom” tax competition among countries, some theoreticians considering it as beneficial others, on the contrary, blaming it as harmful competition, encouraging misallocation of re-sources. The paper endeavours to find out whether the tax competition has indeed a significant influence on the foreign direct investments flow, or other determinants are equally or more important in this process.

Suggested Citation

  • Liliana Donath & Mariana Slavin, 2009. "Tax competition and foreign direct investments. Is there a connection?," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice (1954-2015), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 56, pages 117-132, November.
    • Handle: RePEc:aic:journl:y:2009:v:56:p:117-132
    as

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    File URL: http://anale.feaa.uaic.ro/anale/resurse/10_F06_Donath.pdf
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    References listed on IDEAS

    as
    1. Edwards, Jeremy & Keen, Michael, 1996. "Tax competition and Leviathan," European Economic Review, Elsevier, vol. 40(1), pages 113-134, January.
    2. Wolfgang Eggert & Andreas Haufler, 2006. "Company-Tax Coordination cum Tax-Rate Competition in the European Union," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 62(4), pages 579-601, December.
    3. Gaëtan Nicodème, 2006. "Corporate tax competition and coordination in the European Union: What do we know? Where do we stand?," European Economy - Economic Papers 2008 - 2015 250, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    4. Michael P. Devereux & Rachel Griffith & Alexander Klemm, 2002. "Corporate income tax reforms and international tax competition [‘Do domestic firms benefit from direct foreign investment? Evidence from Venezuela’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 17(35), pages 449-495.
    5. Brennan,Geoffrey & Buchanan,James M., 2006. "The Power to Tax," Cambridge Books, Cambridge University Press, number 9780521027922, September.
    6. Nicodeme, Gaetan, 2006. "Corporate Tax Competition and Coordination in the European Union: What do we know? Where do we stand?," MPRA Paper 107, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Ján Huňady & Marta Orviská, 2015. "Tax Competition and its Consequences for Tax Revenue Structure in Developed Countries: Empirical Evidence Using Panel Cointegration Approach," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 63(6), pages 1913-1921.

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