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 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 The Impact of Renewable Energy, Urbanization and Environmental Sustainability Ratings on the Environmental Kuznets Curve and the Pollution Haven Hypothesis

2021 ◽  
Vol 13 (24) ◽  
pp. 13747
Author(s):  
Chi-Hui Wang ◽  
Prasad Padmanabhan ◽  
Chia-Hsing Huang
Keyword(s):  
Foreign Direct Investment ◽  
Renewable Energy ◽  
Co2 Emissions ◽  
Low Income ◽  
Environmental Sustainability ◽  
Direct Investment ◽  
Low Income Countries ◽  
Kuznets Curve ◽  
Middle Income ◽  
Per Capita

The impacts of renewable energy adoption and environmental sustainability ratings on the validity of the environmental Kuznets curve and the pollution haven hypothesis are examined using annual balanced panel data from 64 middle and low-income countries and spanning the 2005 –2014 period. We show that the GDP per capita/CO2 emissions per capita relationship is an inverse S curve for the full sample of low and middle-income countries and for each subsample. The renewable energy/CO2 emissions per capita relationship is an inverse N curve for the full and the middle-income samples, but a V curve for the low-income sample. The foreign direct investment net inflows/CO2 emissions per capita relationship is an N curve for the full and the middle-income samples, and a positive relationship in the low-income subsample. High levels of government environmental sustainability ratings in low-income countries with relatively higher incomes can attract foreign direct investment net inflows while reducing pollution. In contrast, middle-income countries with high environmental sustainability ratings can attract foreign direct investment net inflows only if they allow small increases in pollution.

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 Aid, Remittances and Foreign Direct Investment

2021 ◽  
pp. 331-353
Author(s):  
Jakkie Cilliers
Keyword(s):  
Foreign Direct Investment ◽  
Low Income ◽  
Direct Investment ◽  
External Support ◽  
Low Income Countries ◽  
Member States ◽  
Development Trajectory ◽  
The Usa ◽  
The Impact ◽  
The Eu

AbstractCilliers sheds light on the evolving global aid, investment and remittance landscape and what it means for Africa, with special attention to China’s growing presence on the continent, and compares that with others. Collectively the EU and its member states provide most aid although the USA is Africa’s largest single aid provider. Aid will remain important for low-income countries but its importance is declining in favour of a focus on the need to attract larger volumes of foreign direct investment (FDI). An External Support scenario explores the impact of heightened aid, remittances and FDI on Africa’s development trajectory.

scholarly journals Do Trade and Investment Agreements Promote Foreign Direct Investment within Latin America? Evidence from a Structural Gravity Model

Mathematics ◽  
2020 ◽  
Vol 8 (11) ◽  
pp. 1882
Author(s):  
Marta Bengoa ◽  
Blanca Sanchez-Robles ◽  
Yochanan Shachmurove
Keyword(s):  
Foreign Direct Investment ◽  
Latin America ◽  
Gravity Model ◽  
Latin American ◽  
Low Income ◽  
Direct Investment ◽  
Trade Agreement ◽  
Low Income Countries ◽  
Regional Trade ◽  
Investment Protection

Latin America has experienced a surge in foreign direct investment (FDI) in the last two decades, in parallel with the ratification of major regional trade agreements (RTAs) and bilateral investment treaties (BITs). This paper uses the latest developments in the structural gravity model theory to study if the co-existence of BITs and two major regional agreements, Mercosur and the Latin American Integration Association (ALADI), exerts enhancing or overlapping effects on FDI for eleven countries in Latin America over the period 1995–2018. The study is novel as it accounts for variations in the degree of investment protection across BITs within Latin America by computing a quality index of BITs. It also explores the nature of interactions (enhancing/overlapping effects) between RTAs and BITs. The findings reveal that belonging to a well-established regional trade agreement, such as Mercosur, is significantly more effective than BITs in fostering intra-regional FDI. Phasing-in effects are large and significant and there is evidence of enhancing effects. Results within the bloc are heterogeneous: BITs exert a positive, but small effect, for middle income countries. However, BITs are not effective in attracting FDI in the case of middle to low income countries, unless these countries ratify BITs with a high degree of investment protection.

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