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Author: Lars P. Feld Publisher: ISBN: Category : Languages : en Pages :
Book Description
Previous empirical studies suggest that decentralization, measured by the number of government layers, is associated with less foreign direct investment (FDI). With an improved dataset on tax autonomy of sub-federal government tiers, we present evidence that fiscal decentralization (de facto) does not reduce FDI. If local governments can set their tax rates and bases independently, they attract more FDI. Analyzing 83,458 corporate cross-border acquisitions (CBA), between 148 source and 187 host countries from 1997 to 2014, we also find that takeovers between two countries increase with size, cultural similarities and common borders of two economies. Shared institutions such as membership in a customs union facilitate CBA. These results apply for high-income hosts but not for middle-income countries.
Author: Lars P. Feld Publisher: ISBN: Category : Languages : en Pages :
Book Description
Previous empirical studies suggest that decentralization, measured by the number of government layers, is associated with less foreign direct investment (FDI). With an improved dataset on tax autonomy of sub-federal government tiers, we present evidence that fiscal decentralization (de facto) does not reduce FDI. If local governments can set their tax rates and bases independently, they attract more FDI. Analyzing 83,458 corporate cross-border acquisitions (CBA), between 148 source and 187 host countries from 1997 to 2014, we also find that takeovers between two countries increase with size, cultural similarities and common borders of two economies. Shared institutions such as membership in a customs union facilitate CBA. These results apply for high-income hosts but not for middle-income countries.
Author: Eldar F. Rizvanov Publisher: ISBN: Category : Decentralization in government Languages : en Pages : 55
Book Description
The purpose of this paper is to theoretically outline and empirically investigate a theory linking federalism with the inflow of foreign direct investment into a country. Throughout the literature, the importance of the quality of governance is one of the most prominent factors emphasized in determining the amount of inflow of foreign direct investment into a country. This paper hypothesizes that federalism, as an important determinant of the quality of governance, should exert a significant positive effect on the inflow of foreign direct investment into a country. The causal mechanisms of this theory poses that federalism and decentralization increase the number of veto players in government policymaking thereby increasing policy stability and reducing expected costs for multinational corporations. The contribution of this paper is that it empirically assesses the impact of different dimensions of federalism on the inflow of FDI. In order to conduct this investigation, I use the data available for all countries for the period 1970-2000. I find that while administrative federalism is highly significant in its influence on the inflow of FDI into a country, though only an interactive model of fiscal federalism achieves conventional levels of statistical significance, while political federalism fails to achieve statistical significance in any of the modes. The findings of this research call into question near uniform move towards decentralization in virtually all aspects of governance and point out that in order to attract foreign direct investment, government architects need to be discerning in terms of different types of federalism.
Author: Jessica Wallack Publisher: Cambridge University Press ISBN: 9781139448703 Category : Business & Economics Languages : en Pages : 558
Book Description
This collection focuses on the ways in which federalism has affected and been affected by economic reform, especially global integration. The editors and contributors focus in particular on the political economy of institutional and economic change - how the division of authority between national and subnational governments shapes debates over policy changes, as well as how the changing economic environment creates incentives to modify the basic agreements between levels of governments. Each chapter contains a historical overview, and an in-depth account of division of authority, lines of accountability, and legislative, bureaucratic, and other arenas in which the levels of government interact for a particular country. The analyses are based on reform (or non-reform) episodes for each country - most from recent history, but some spanning the century. As a collection, the country studies span a range of developing and industrial countries with varying political systems.
Author: Jorge Martinez-Vazquez Publisher: Routledge ISBN: 1135972605 Category : Business & Economics Languages : en Pages : 253
Book Description
This book addresses the question of the best possible uses of public funds and the most effective strategies for regional development, focusing on the develop of human capital and the methodology of formulating regional policy.
Author: Nathan M. Jensen Publisher: Princeton University Press ISBN: 1400837375 Category : Business & Economics Languages : en Pages : 212
Book Description
What makes a country attractive to foreign investors? To what extent do conditions of governance and politics matter? This book provides the most systematic exploration to date of these crucial questions at the nexus of politics and economics. Using quantitative data and interviews with investment promotion agencies, investment location consultants, political risk insurers, and decision makers at multinational corporations, Nathan Jensen arrives at a surprising conclusion: Countries may be competing for international capital, but government fiscal policy--both taxation and spending--has little impact on multinationals' investment decisions. Although government policy has a limited ability to determine patterns of foreign direct investment (FDI) inflows, political institutions are central to explaining why some countries are more successful in attracting international capital. First, democratic institutions lower political risks for multinational corporations. Indeed, they lead to massive amounts of foreign direct investment. Second, politically federal institutions, in contrast to fiscally federal institutions, lower political risks for multinationals and allow host countries to attract higher levels of FDI inflows. Third, the International Monetary Fund, often cited as a catalyst for promoting foreign investment, actually deters multinationals from investment in countries under IMF programs. Even after controlling for the factors that lead countries to seek IMF support, IMF agreements are associated with much lower levels of FDI inflows.
Author: International Institute of Management Publisher: Lexington, Mass. ; Toronto : Lexington Books ISBN: Category : Business & Economics Languages : en Pages : 378
Author: Peggy B. Musgrave Publisher: Edward Elgar Publishing ISBN: Category : Business & Economics Languages : en Pages : 492
Book Description
The globalization of economies and the vast expansion of foreign investment have greatly increased the problems of international taxation. Musgrave (economics, emerita, U. of California-Santa Cruz) argues that cross- border tax issues should not be left to the destructive forces of tax competition but should be handled through coordinating measures of international tax agreements, thereby minimizing tax distortions in the international flow of capital while leaving countries free to determine their own tax structures. The 22 essays are drawn from a variety of publications including technical papers prepared for the government and the World Bank, books, The Columbia Journal of World Business, Tax Law Review, and other publications. Annotation copyrighted by Book News, Inc., Portland, OR
Author: Lars P. Feld
Author: Lars P. Feld
Author: Eldar F. Rizvanov
Author: Jessica Wallack
Author: United States. General Accounting Office
Author: Jorge Martinez-Vazquez
Author: Nathan M. Jensen
Author: Raghbendra Jha
Author: Irving J. Goffman
Author: International Institute of Management
Author: Peggy B. Musgrave