scholarly journals The Impact of United States Tax Policies on Sectoral Foreign Direct Investment to Asia

2020 ◽  
Author(s):  
Valerie Mercer-Blackman ◽  
Shiela Camingue-Romance
Keyword(s):  
United States ◽  
Foreign Direct Investment ◽  
Income Tax ◽  
Direct Investment ◽  
The United States ◽  
Business Environment ◽  
Corporate Income Tax ◽  
Market Size ◽  
Tax Rate ◽  
The Impact

Using panel data at the country and sector level spanning almost 15 years, this paper shows that the corporate income tax rate does not affect the United States’ inward foreign direct investment once market size, costs, openness, and the business environment, are taken into account. This is true for United States foreign direct investment bound to developing Asia and across most sectors.

scholarly journals Corporate Income Tax Rate and Foreign Direct Investment: A Cross-Country Empirical Study

2020 ◽  
Vol 66 (1) ◽  
pp. 25
Author(s):  
Amalia Indah Sujarwati ◽  
Riatu Mariatul Qibthiyyah
Keyword(s):  
Foreign Direct Investment ◽  
Low Income ◽  
Income Tax ◽  
Direct Investment ◽  
Corporate Income Tax ◽  
Low Income Countries ◽  
Tax Havens ◽  
Middle Income ◽  
Tax Rate ◽  
The Impact

This study aims to explore the impact of Corporate Income Tax Rate (CITR) on Foreign Direct Investment (FDI), specified based on income levels of countries. Using an unbalanced fixed-effect method of 112 countries over the period of 2003–2017, our finding shows that CITR has no significant impact on FDI. Corporate Income Tax (CIT) is levied on all firms, and as CIT is generally more complex than other types of taxes, its influences on FDI are in question. Excluding tax havens from the sample, our findings show that CITR has a weak significance only in the lower-middle-income and low-income countries.

scholarly journals Sanctions and Foreign Direct Investment: Damage to Russia and Sanctioning Countries

2020 ◽  
Vol 14 (1) ◽  
pp. 44-53
Author(s):  
S. V. Kazantsev
Keyword(s):  
United States ◽  
Foreign Direct Investment ◽  
United Kingdom ◽  
Russian Federation ◽  
Direct Investment ◽  
The United States ◽  
Foreign Investments ◽  
Before And After ◽  
The Russian Federation ◽  
The Impact

The volume and dynamics of foreign investments are formed under the influence of many conditions and circumstances. The author of this article examines the impact of one class of factors that determine the dynamics and geographical structure of Russia’s foreign direct investment inflows outflows. These are anti-Russian sanctions imposed by a group of States in 2014 to isolate the Russian Federation in the field of politics, finance and economy, science and technology, information and culture. For these countries, Russia is not a priority investment target. The share of the Russian Federation varied from two to five per cent, and rarely exceeded 10 per cent of the total volume of these countries foreign direct investment net outflows in 2007–2018. The author presented in this article the positive and negative aspects of foreign direct investment, their dynamics before and after the imposition of sanctions. In particular, the author shows that the reduction in the foreign direct investment net inflows from Russia to the sanctioning countries was less significant for the leading EU States — Germany, France and United Kingdom — than for many other sanctioning countries The cuts in Russia’s foreign direct investment net outflows had almost no impact on the United States who was the main initiator of anti-Russian sanctions.

scholarly journals THE IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH (A CAUSAL STUDY IN THE UNITED STATES)

2018 ◽  
Vol 4 (1) ◽  
Author(s):  
Donny Susilo
Keyword(s):  
United States ◽  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multiple Linear Regression Model ◽  
The United States ◽  
Ordinary Least Squares ◽  
Development Effort ◽  
Positive Effects ◽  
The Impact

<p>International investment is strategic step for country due to lack of capital and technology transfer and it is generally well known as Foreign Direct Investment (FDI). Many policy makers and academics contend that FDI can have important positive effects on a host country’s development effort. This research examines the impact of Foreign Direct Investment on Economic Growth in the United States by multiple linear regression model and its estimation using ordinary least squares (OLS). This research classifies all the sectors to be 10 sectors. This research uses data for the period 2000 –2017 and suggests that not all forms of foreign investment seem to be beneficial to host economies. Some sectors provide positive correlation to economic growth and some provides negative effect. Nevertheless, it is significant yet, this is because there is different characteristic between developed and developing countries. Economic growth in the U.S is mostly driven by personal consumption.</p>

scholarly journals The Impact of Tax Incentives on Foreign Direct Investment in Indonesia

2021 ◽  
Vol 4 (1) ◽  
pp. 66
Author(s):  
Rotua Andriyati Siregar ◽  
Arianto Patunru
Keyword(s):  
Foreign Direct Investment ◽  
Income Tax ◽  
Direct Investment ◽  
Tax Incentives ◽  
Least Square ◽  
Corporate Income Tax ◽  
Dummy Variable ◽  
Investment Cost ◽  
The Impact ◽  
Variable Analysis

Using the data from twenty-two partner countries in 1999 to 2018, this paper presents the impact of tax incentives on foreign direct investment (FDI) in Indonesia. A fixed-effect and least square dummy variable analysis are used to determine the direction and significance of tax incentives in its correlation with FDI together with other FDI determinant. The main finding shows that as tax incentives increase, the FDI flow decrease significantly. However, corporate income tax (CIT) rate which also used as investment cost proxy shows that as it decreases the FDI flow will increase.

scholarly journals The Role of Taxes in the Disconnect Between Corporate Performance and Economic Growth

2020 ◽  
Vol 66 (11) ◽  
pp. 5427-5447 ◽  
Author(s):  
Urooj Khan ◽  
Suresh Nallareddy ◽  
Ethan Rouen
Keyword(s):  
Economic Growth ◽  
Income Tax ◽  
Corporate Performance ◽  
Underlying Mechanism ◽  
The United States ◽  
Corporate Income Tax ◽  
Tax Rate ◽  
Corporate Profits ◽  
The Impact ◽  
The U.S

We investigate the relation between corporate performance and overall economic growth in the United States. In particular, we focus on the impact of the U.S. corporate tax regime on this relation. Exploiting time-series variation and a tax shock, we document that the relatively higher corporate income tax rate and the tax treatment of foreign earnings of U.S. corporations have contributed to a disconnect between the performance of the corporate sector and the overall economy. Specifically, the growth of domestic (national) corporate profits, on average, has outpaced the growth of the domestic (national) economy, and this disconnect increases as the difference between the U.S. corporate income tax rate and the average tax rate of the other Organisation for Economic Co-operation and Development countries increases. The underlying mechanism is fewer corporate profits being channeled into subsequent domestic investments when the U.S. tax rate is relatively higher, leading to lower economic growth. Our findings have implications for policy setters. This paper was accepted by Brian Bushee, accounting.

The impact of natural resources, human capital, and foreign direct investment on the ecological footprint: The case of the United States

2019 ◽  
Vol 63 ◽  
pp. 101428 ◽  
Author(s):  
Muhammad Wasif Zafar ◽  
Syed Anees Haider Zaidi ◽  
Naveed R. Khan ◽  
Faisal Mehmood Mirza ◽  
Fujun Hou ◽  
...  
Keyword(s):  
United States ◽  
Human Capital ◽  
Foreign Direct Investment ◽  
Natural Resources ◽  
Direct Investment ◽  
Ecological Footprint ◽  
The United States ◽  
The Impact

US tax plans threaten Mexican manufacturing

2018 ◽  
Keyword(s):  
United States ◽  
Income Tax ◽  
Direct Investment ◽  
The United States ◽  
Manufacturing Firms ◽  
Corporate Income Tax ◽  
Automated Manufacturing ◽  
Tax Reforms ◽  
Content Type ◽  
Capital Intensive

Subject Impact of US tax plans on Mexico. Significance US tax reforms have put Mexico’s competitiveness under pressure, slashing US corporate income tax and creating additional incentives for capital-intensive investments. The new rules are especially relevant for manufacturing firms which form Mexico’s largest source of foreign direct investment (FDI) but are the recipients of the some of the plan’s most generous benefits. Impacts The tax plan may accelerate more capital-intensive, highly automated manufacturing investment in the United States. The erosion of Mexico’s tax advantage will reinforce pressure to keep wages low, exacerbating political tensions. Pressure from Mexican business for a parallel tax cut is likely to mount as the elections approach.

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