Citation

Discussion Paper Details

Please find the details for DP3383 in an easy to copy and paste format below:

Full Details

Title: Why Corporate Taxes May Rise: The Case of Trade Liberalization and Foreign Ownership

Author(s): Hans Jarle Kind, Guttorm Schjelderup and Karen-Helene Ulltveit-Moe

Publication Date: May 2002

Keyword(s): corporate taxes, international ownership, international tax competition, multinational firms and trade liberalization

Programme Area(s): International Trade and Regional Economics

Abstract: Almost all the literature on tax competition in the presence of multinationals (MNCs) and profit shifting ignores trade costs. This Paper studies how economic integration, in terms of reduced trade costs and internationalization of ownership, affects tax competition and equilibrium corporate taxes. We find that equilibrium taxes increase subsequent to a reduction of trade costs if MNCs are owned by home country residents and also subsequent to increased internationalisation of ownership.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=3383

Bibliographic Reference

Kind, H, Schjelderup, G and Ulltveit-Moe, K. 2002. 'Why Corporate Taxes May Rise: The Case of Trade Liberalization and Foreign Ownership'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=3383