The impact of corporate income tax rate on foreign direct investment in Australia and implications for technology transfer

2005 ◽  
Vol 1 (3/4) ◽  
pp. 451 ◽  
Author(s):  
Albert Wijeweera ◽  
Mahinda Siriwardana
Keyword(s):  
Foreign Direct Investment ◽  
Technology Transfer ◽  
Income Tax ◽  
Direct Investment ◽  
Corporate Income Tax ◽  
Tax Rate ◽  
The Impact

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 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.

Korea’s Foreign Direct Investment in the Automotive Industry in China

China Report ◽  
2018 ◽  
Vol 54 (2) ◽  
pp. 175-193 ◽  
Author(s):  
Jungmin Lee ◽  
Jai S. Mah
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Technology Transfer ◽  
Automotive Industry ◽  
Direct Investment ◽  
Policy Implications ◽  
Foreign Firms ◽  
Job Opportunities ◽  
Korean Firm ◽  
The Impact

This article examines the impact of foreign-invested enterprises in the development of China’s automotive industry. It particularly focuses on the case of foreign direct investment (FDI) by a Korean firm, namely, the Hyundai Motor Company, in China. The Chinese government’s policy regarding the automotive industry allowed China’s domestic manufacturers to benefit from technology transfer, as foreign firms were not allowed to invest exclusively in China without a partnership. The contribution of Korea’s investment in China’s automotive industry would comprise the creation of job opportunities, technology transfer and the development of the automobile parts industry. Korea’s investment in the automotive industry of China has policy implications for China and other developing countries trying to expand their technology-intensive industries.

scholarly journals Protection of National Sovereignty and Hindering Foreign Investment

2017 ◽  
pp. 1-14
Author(s):  
Badreddine Berrahlia ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Technology Transfer ◽  
Foreign Investment ◽  
Direct Investment ◽  
Foreign Direct Investments ◽  
Business Law ◽  
National Sovereignty ◽  
Investment Projects ◽  
Recent Debate ◽  
The Impact

The article explores the recent debate regarding the rules of sovereignty and the need to acquire technology through Foreign Direct Investment (FDI) in relation to the Algerian Business Law. The article explores the 51/49 rule as an obligatory condition for direct international partnerhip projects, which requires a majority of Algerian ownership of at least 51 percent in all foreign direct investment projects (FDIP). The current research also investigates the impact of the 51/49 rule on the inflows of the foreign direct investments in Algeria as well as some other countries. The research concludes that there is no evidence that the amendment of the 51/49 rule would lead to technology transfer through the FDI.

scholarly journals THEORETICAL AND METHODOLOGICAL ASPECTS OF DETERMINING THE INFLUENCE OF GLOBALIZATION PROCESSES ON THE DEVELOPMENT OF THE ECONOMY OF UKRAINE

2021 ◽  
Author(s):  
Svitlana Bestuzheva ◽  
Viktoria Kozub
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Global Economy ◽  
World Economy ◽  
Modern Trend ◽  
Tax Rate ◽  
Goods And Services ◽  
The World ◽  
World Economic ◽  
The Impact

The paper proposes a scientific approach to determining the impact of globalization processes on the development of Ukraine’s economy based on the analysis of the dynamics and modeling of indicators of the degree of integration of Ukraine’s economy into the system of world economic relations. Globalization is seen as a modern trend in the world economy as a system of interconnected and interdependent economic entities, among which a significant place is occupied by countries. The authors determine the degree of Ukraine's integration into the world economic space by its place in the ratings of globalization and economic openness. Analysis of the dynamics of the degree of integration of Ukraine's economy into the global economy is based on GDP, export and import quotas during 2006 – 2020. Based on the results of the analysis, the authors developed an econometric model for assessing the impact of factors on the globalization index of Ukraine, identified the most significant positive factors, namely the volume of exports of goods and services as a percentage of GDP, GDP, the ratio of foreign direct investment to GDP, the share of innovative exports export of goods and services of the country. The import quota and the corporate income tax rate have been identified as negative factors. Based on the results obtained during the modeling, the authors have developed and proposed a sequence of measures to increase the level of openness of Ukraine's economy in the context of its globalization. Perspective forms of globalization in the context of forming a new perspective of the international community on changing the vector of world economy - from globalization to regionalization and nationalization which have materialized in increasing the volume and diversification of the structure of international trade, intensification of international financial transactions, the emergence of transnational business, a sharp increase in foreign direct investment and intensification of international labor migration.

scholarly journals Foreign Direct Investment, Indeks Kemudahan Berusaha, Dan Tarif Pajak Penghasilan Negara-Negara ASEAN

2021 ◽  
Vol 13 (1) ◽  
pp. 43-61
Author(s):  
Setiadi Alim Lim
Keyword(s):  
Foreign Direct Investment ◽  
Income Tax ◽  
Direct Investment ◽  
Tax Rates ◽  
Tax Rate ◽  
Asean Member ◽  
Doing Business ◽  
Ease Of Doing Business ◽  
Asean Countries ◽  
Foreign Direct Investment Inflows

The inflow of Foreign Direct Investment is needed by all countries in the world tobe used as a catalyst to achieve the goals of sustainable development in allaspects of a country's life. Countries in the Southeast Asia Region that aremembers of ASEAN also need Foreign Direct Investment. The success of acountry in attracting Foreign Direct Investment inflows is determined by manyfactors, including the ease of doing business and the income tax rate. In thisstudy, a comparative study was conducted between the success of ASEANcountries in obtaining Foreign Direct Investment inflows with the success ofachieving a high index of ease of doing business and the use of competitiveincome tax rates. The comparison was only made between 10 ASEAN membercountries from 11 ASEAN member countries, because of the difficulty in collecting data from 1 other ASEAN member country, namely Timor Leste. The results showed that Singapore succeeded in attracting the largest Foreign DirectInvestment inflows among other ASEAN countries, amounting to 59.10% of thetotal Foreign Direct Investment inflows from ASEAN countries. Singapore'ssuccess in attracting the largest Foreign Direct Investment inflow among otherASEAN countries is directly proportional to its achievement in obtaining the bestease of doing business index and the lowest income tax rate compared to otherASEAN countries. Meanwhile, for other ASEAN countries, there is no visiblecomparison between the success of obtaining Foreign Direct Investment with theease of doing business index and the Income Tax rate.

scholarly journals Tax Policy and Foreign Direct Investment: A Regime Change Analysis.

2020 ◽  
Vol 5 (3) ◽  
pp. 84-98
Author(s):  
Onome Christopher Edo ◽  
Anthony Okafor ◽  
Akhigbodemhe Emmanuel Justice
Keyword(s):  
Foreign Direct Investment ◽  
Income Tax ◽  
Direct Investment ◽  
Military Regime ◽  
Foreign Direct Investments ◽  
Tax Policies ◽  
Change Analysis ◽  
Correction Model ◽  
The Military ◽  
The Impact

Objective – Tax policies play significant role in the direction of foreign direct investments. We investigate the proposition that tax policies enacted by military and democratic regimes differ on the influence the foreign direct investments. Methodology/Technique – Our hypotheses are tested using the error correction model as we compare the impact of tax policies on flow foreign direct investments in Nigeria between two dispensations: military rule from 1983 to 1999 and democratic rule from 1999 to 2017. Panel data between 1983 and 2017 were obtained from the databases of the World Bank, Central Bank of Nigeria and the Federal Inland Revenue Services. The explanatory variables include company income tax, value added tax, tertiary education tax and customs and exercise duties. Findings – The study reveals that tax variables during the military regime exerted more explanatory power of 79% compared to the civilian administration of 66% with respect to the impact of corporate taxes on FDI. The effect of company income tax on FDI was more pronounced during the military regime than in the civilian regime. FDI had a higher degree of convergence during the military regime compared to civilian rule, and this is vital for policy assessments and comparison. Novelty – We bring to light new evidences on the effects of taxes polices on FDI. Type of Paper: Empirical Keywords: Corporate taxes; Tax Policies; Foreign Direct Investments; Error Correction Model; Military regime; Civilian regime. Reference to this paper should be made as follows: Edo, O.C; Okafor, A; Emmanuel, A. (2020). Tax Policy and Foreign Direct Investment: A Regime Change Analysis., J. Fin. Bank. Review, 5 (3): 84 – 98 https://doi.org/10.35609/jfbr.2020.5.3(3) JEL Classification: E22, F21, H2, P33.

scholarly journals Contribution of Foreign Direct Investment in Nepal

2019 ◽  
Vol 9 ◽  
pp. 77-89
Author(s):  
Khom Raj Kharel ◽  
Suman Kharel
Keyword(s):  
Foreign Direct Investment ◽  
Technology Transfer ◽  
Foreign Investment ◽  
Direct Investment ◽  
Significant Contribution ◽  
Positive Impact ◽  
Investment Environment ◽  
The Government ◽  
Macro Variables ◽  
The Impact

 The purpose of this paper is to analyze the foreign direct investment status and environment in Nepal. There is significant contribution of foreign investment in economic development of developing countries like Nepal. Foreign investment attraction in a country like Nepal increases the foreign capital and technology transfer. Since 1990s inflow of foreign direct investment (FDI) has been increasing in Nepal due to the adoption of liberal economic policy by the government of Nepal. The Foreign Investment Technology Transfer Act (FITTA) has made better foreign investment environment in Nepal. This paper examines and analyses the contribution of FDI in Nepal. For the analysis, simple linear regression model has been applied to measure the impact of FDI on GDP and employment. Because FDI inflow has been recorded after 1990s, the impact of FDI has been analyzed in this paper over the period of 1990/91-2018/19. This study finds a positive impact of FDI on GDP and other macro variables.

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