This paper analyzes the effects of legal uncertainty around corporate
income taxation on foreign direct investment (FDI). Legal uncertainty can
take many forms: double tax agreements, different types of legal systems
and corruption. We test the effect of legal uncertainty on foreign direct
investment with an international panel. We find that an increase in the
ratio of the statutory corporate income tax rate of the destination relative
to the source country exhibits a negative impact on foreign direct
investment. Interacting the statutory corporate income tax rate with
measures of legal uncertainty, we observe a negative effect. / Series: WU International Taxation Research Paper Series
| Identifer | oai:union.ndltd.org:VIENNA/oai:epub.wu-wien.ac.at:3767 |
| Date | January 2012 |
| Creators | Zagler, Martin, Zanzottera, Cristiana |
| Publisher | WU Vienna University of Economics and Business, Universität Wien |
| Source Sets | Wirtschaftsuniversität Wien |
| Language | English |
| Detected Language | English |
| Type | Paper, NonPeerReviewed |
| Format | application/pdf |
| Relation | http://epub.wu.ac.at/3767/ |
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