The Role of Selected Tax Types on Foreign Direct Investment: The Case of OECD Countries


Yildirimcakar I., Gorur C., Kanberoğlu Z.

MALIYE DERGISI, no.180, pp.76-92, 2021 (Journal Indexed in ESCI) identifier

  • Publication Type: Article / Article
  • Volume: Issue: 180
  • Publication Date: 2021
  • Title of Journal : MALIYE DERGISI
  • Page Numbers: pp.76-92
  • Keywords: Foreign Direct Investment, Taxes, Panel Cointegration, DETERMINANTS, POLICY, RATES

Abstract

In this study, the interaction between foreign direct investment and tax on international trade, tax on income, profits and capital gains and tariff rate is based on annual data from 36 OECD countries covering the years 1995-2019 were examined by Westerlund (2007) panel cointegration test. What makes the study different from previous studies is that it tries to determine the effect of different tax types on foreign direct investment. According to econometric findings, there is a long-term negative relationship between foreign direct investment and tax on international trade, tax on income, profits and capital gains and tariff rate.