RIS ID
109526
Abstract
This paper examines the determinants of a multinational enterprise's (MNEs) decision to set up tax haven subsidiaries. We adapt the firm-specific advantage-country-specific advantage (FSA-CSA) framework and construct a number of empirically testable hypotheses. The analysis is based on a database covering 14,209 MNEs in twelve OECD countries. We find that the variety of capitalism of a MNEs home location and the level of technological intensity has a strong impact on this decision. We also find that the home country corporate tax rate has a minimal impact. This suggests that corporate tax liberalisation is unlikely to deter MNEs from undertaking this activity
Publication Details
Jones, C. & Temouri, Y. 2016, 'The determinants of tax haven FDI', Journal of World Business, vol. 51, no. 2, pp. 237-250.