직접투자에 대한 조세유인효과

The Effects of Taxation on Japanese Direct Investment Abroad

This study attempts to estimate the extent to which taxes influence Japanese direct investment abroad using pooled cross-country data. The panel data set includes measures of Japanese direct investment into each of eight advanced countries and its potential determinants during 1982-1992. Our estimation results provide strong empirical support to the Sholes-Wolfson proposition that an increase in the effective corporate tax rate in the host country could increase inward foreign direct investment. Our results also support the proposition that accounting profit data for multinationals, due to transfer pricing activities, may not reflect the true profitability of doing business in a place. These findings imply that the effects of tax changes on foreign direct investment shold be cautiously interpreted. A tax cut for domestic investment may not necessarily increase foreign investment flows.