The Empirical Relevance of Taxes on Capital for Location Descisions of Multinationals Enterprises

Type WU Joint Research Program

Funding Bodies
  • Austrian Science Fund

Duration Oct. 6, 2003 - Oct. 6, 2007

www2.wu-wien.ac.at/taxlaw/sfb/info/details.pdf
  • Economics 4/Applied Economics AE (Former organization)

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Abstract (German)

Objective:
The research deals with the wider question, whether variations in the tax burden levied on real capital have an impact on location decisions for foreign Multinationals. Throughout the analysis the focus is upon inward Foreign Direct Investment (FDI) from the most important home countries into some of the new EU Member States namely the "CEEC-5", i.e. Hungary, Czech Republic, Slovakia, Slovenia and Poland. This regional focus can be justified on the grounds that harmful tax competition may be fostered by the EU Eastern Enlargement process. The goal of the analysis is the econometric measurement of "tax elasticities" of real capital on the one hand and the isolation of those changes in the tax laws (tariffs or base changes) which capital is most sensitve to on the other hand.

Abstract (English)

Objective:
The research deals with the wider question, whether variations in the tax burden levied on real capital have an impact on location decisions for foreign Multinationals. Throughout the analysis the focus is upon inward Foreign Direct Investment (FDI) from the most important home countries into some of the new EU Member States namely the "CEEC-5", i.e. Hungary, Czech Republic, Slovakia, Slovenia and Poland. This regional focus can be justified on the grounds that harmful tax competition may be fostered by the EU Eastern Enlargement process. The goal of the analysis is the econometric measurement of "tax elasticities" of real capital on the one hand and the isolation of those changes in the tax laws (tariffs or base changes) which capital is most sensitve to on the other hand.

Partners

  • Vienna Institute for International Economic Studies - Austria
  • Oesterreichische Nationalbank - Austria

Publications

Contribution to conference proceedings

2005 Bellak Christian, Leibrecht Markus. 2005. Effective Tax Rates as Determinant of Foreign Direct Investment in Central and East European Countries: A Panel Analysis. 31st European International Buisiness Agency Annual Conference, Oslo, December (Details)

Paper presented at an academic conference or symposium

2005 Bellak Christian, Leibrecht Markus. 2005. Effective Tax Rates as Determinant of Foreign Direct Investment in Central and East European Countries: A Panel Analysis.. 31st European International Buisiness Agency Annual Conference, Oslo, December, 2005 (Details)

Classification

Expertise

  • location choice
  • taxation
  • central- and eastern europe
  • Multinational Enterprises