Liu, Junyi. / Thesis (M.Phil.)--Chinese University of Hong Kong, 2007. / Includes bibliographical references (leaves 76-79). / Abstracts in English and Chinese. / Table of Content / Abstract --- p.i / Acknowledgement --- p.iii / Table of Content --- p.iv / Chapter Chapter 1 --- Introduction --- p.1 / Chapter 1.1 --- "“Race to the bottom""" --- p.1 / Chapter 1.2 --- The New Context of International Trade --- p.2 / Chapter 1.3 --- Related party trade of Hong Kong --- p.4 / Chapter 1.4 --- Transfer Pricing --- p.6 / Chapter Chapter 2 --- The Theory --- p.9 / Chapter 2.1 --- Introduction --- p.9 / Chapter 2.2 --- Literature Review --- p.10 / Chapter 2.3 --- The Model --- p.16 / Chapter 2.4 --- MNC Manipulation Of Transfer Pricing --- p.20 / Chapter 2.5 --- MNC Manipulation Of Host Country Demand --- p.25 / Chapter 2.6 --- MNC Manipulation Of Explicit Benchmarks On Transfer Prices --- p.28 / Chapter 2.7 --- The Race to the Bottom in International Tax Competition --- p.32 / Chapter 2.8 --- Textbook Model without Transfer Pricing --- p.35 / Chapter 2.9 --- Concluding Remarks --- p.37 / Chapter Chapter 3 --- Empirical Evidence --- p.39 / Chapter 3.1 --- Introduction --- p.39 / Chapter 3.2 --- Related Literature --- p.41 / Chapter 3.3 --- Data and Empirical Specification --- p.44 / Chapter 3.4 --- Empirical Results --- p.51 / Appendix --- p.58 / List of Tables --- p.63 / Table 1 Related Party Trade as a Share of U.S. Imports from Selected Countries and Regions --- p.63 / Table 2 Related Party Trade as a Share of U.S. Exports from Selected Countries and Regions --- p.63 / "Table 3A Top 10 Source Countries for Re-exports via Hong Kong, 2006" --- p.64 / "Table 3B: Top 10 Destinations of Re-exports via Hong Kong, 2006" --- p.64 / Table 4A: Top 10 sources of China's FDI in 2005 --- p.64 / Table 4B: Top 10 sources of China's FDI in 2006 --- p.64 / Table 4C Top 10 sources of China's FDI (January to March 2007) --- p.64 / Table 5 Round Tripping of FDI to the PRC: The Case of U.S. --- p.65 / Table 6 Top 24 Destinations for FDI in 2005 --- p.65 / Table 7 Percentage of foreign firms reporting losses in the PRC --- p.65 / Table 8 43 Countries by region --- p.66 / Table 9 Gross Foreign Productions of U.S. Multinationals by Country from 1997 to 2004 --- p.66 / Table 10 Tax Rates by Country from 1997 to 2004 --- p.67 / Table 11 Original Corruption Index by country from 1997 to 2004 --- p.68 / Table 12 U.S. MNCs' Internal Trade Ratio by country from 1997 to 2004 --- p.69 / Table 13 - OLS Regression of Foreign Productions on Present Tax Rates --- p.70 / Table 14 - OLS Regression of Foreign Productions on Present Tax Rates --- p.71 / Table 15 OLS Regression of Foreign Productions on One-Year-Lag Tax Rate --- p.71 / Table 16 OLS Regression of Foreign Productions on One-Year-Before Tax Rate --- p.72 / Table 17 OLS Regression of Foreign Productions on Corruption A and B --- p.72 / Table 18 OLS Regression of Foreign Productions on Corruption B and C --- p.73 / Table 19 OLS Regression of Tax Rate on Country Dummies --- p.74 / Bibliography --- p.76