The Review of Economics and Statistics · 1991 · 844 citations · 2 references
Social SciencesBusiness EconomicsEconomicsInternational TradeTaxationTransfer PricingCross-border TradeIncome ShiftingMultinational CorporationsMultinational EnterprisesProfit ShiftingTariff PolicyEffective Corporate Tax RatesInternational Profit ShiftingInternational Trade EconomicsInternational Trade FlowsPricing Under Tariff RegimesProfit Shifting AnalysisReal Investment DecisionsShifting Profits To Low-tax Jurisdictions
Three interrelated aspects of U.S. multinational corporation activity are analyzed here: the ability to shift profits from high-tax countries to low-tax countries; the impact of host country taxes and tariffs on the distribution of real capital; and the influence of these policies on international trade patterns of the United States and host countries. The cross-sectional empirical analysis indicates that the observed pattern of reported profits in high and low-tax countries is consistent with income shifting behavior and that real investment responds to host country effective tax rates and tariffs. The United States appears both to import more from and export more to low-tax countries where MNC investment is greater, but this bilateral focus must be amplified to consider multilateral effects if trade benefits are to be projected. Copyright 1991 by MIT Press.
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Introduction to the Theory and Practice of Econometrics
Eric R. Ziegel, George G. Judge, Peter Hill et al. · Technometrics · 1989 · 2.2K citations