Liu, Li
Where does multinational investment go with territorial taxation: evidence from the United Kingdom - American Economic Journal: Economic Policy - 12(1), Feb, 2020: p. 325-58
In 2009, the United Kingdom changed from a worldwide to a territorial tax system, abolishing dividend taxes on foreign repatriation from many low-tax countries. This paper assesses the causal effect of territorial taxation on real investments, using a unique dataset for multinational affiliates in 27 European countries and employing the difference-in-differences approach. It finds that the territorial reform has increased the investment rate of UK multinationals by 16.7 percentage points in low-tax countries. In the absence of any significant investment reduction elsewhere, the findings represent a likely increase in total outbound investment by UK multinationals.- Reproduced
Multinational firms, International business, Capital budgeting, Fixed investment and inventory studies
Where does multinational investment go with territorial taxation: evidence from the United Kingdom - American Economic Journal: Economic Policy - 12(1), Feb, 2020: p. 325-58
In 2009, the United Kingdom changed from a worldwide to a territorial tax system, abolishing dividend taxes on foreign repatriation from many low-tax countries. This paper assesses the causal effect of territorial taxation on real investments, using a unique dataset for multinational affiliates in 27 European countries and employing the difference-in-differences approach. It finds that the territorial reform has increased the investment rate of UK multinationals by 16.7 percentage points in low-tax countries. In the absence of any significant investment reduction elsewhere, the findings represent a likely increase in total outbound investment by UK multinationals.- Reproduced
Multinational firms, International business, Capital budgeting, Fixed investment and inventory studies