International Taxation and Multinational Activity

by Hines, James R., Jr.

• ISBN13: 9780226341736
• ISBN10: 0226341739
• Format: Hardcover
• Copyright: 2001-03-15
• Publisher: Univ of Chicago Pr

Summary

Because the actions of multinational corporations have a clear and direct effect on the flow of capital throughout the world, how and why these firms behave the way they do is a major issue for national governments and their policymakers. With an unprecedented ability to adjust the scale, character, and location of their global operations, international corporations have become increasingly sensitive to the kind and degree of tax obligations imposed on them by both host and home countries. Tax rules affect the volume of foreign direct investment, corporate borrowing, transfer pricing, dividend and royalty payments, and research and development. National governments that tax the profits of international firms face important challenges in designing tax policies to attract them. This collection examines the global ramifications of tax policies, offering up-to-date, theoretically innovative, and empirically sound perspectives on a problem of immense significance to future economic growth around the globe.

Author Biography

James R. Hines is Richard A. Musgrave Collegiate Professor of Economics in the department of economics and Professor of Law at the University of Michigan Law School.

Table of Contents

Acknowledgments	ix
Introduction	1	(8)
James R. Hines
Has U.S. Investment Abroad Become More Sensitive to Tax Rates?	9	(30)
Rosanne Altshuler
Harry Grubert
T. Scott Newlon
Jack M. Mintz
Tax Sparing and Direct Investment in Developing Countries	39	(34)
James R. Hines
Timothy J. Goodspeed
Does Corruption Relieve Foreign Investors of the Burden of Taxes and Capital Controls?	73	(16)
Shang-Jin Wei
Bernard Yeung
Transaction Type and the Effect of Taxes on the Distribution of Foreign Direct Investment in the United States	89	(24)
Deborah L. Swenson
William C. Randolph
Tax Planning by Companies and Tax Competition by Governments: Is there Evidence of Changes in Behavior?	113	(30)
Harry Grubert
Joel Slemrod
Valuing Deferral: The Effect of Permanently Reinvested Foreign Earnings on Stock Prices	143	(30)
Julie H. Collins
John R. M. Hand
Douglas A. Shackelford
Kevin Hassett
The Impact of Transfer Pricing on Intrafirm Trade	173	(28)
Kimberly A. Clausing
Deen Kemsley
International Taxation and the Location of Inventive Activity	201	(30)
James R. Hines
Adam B. Jaffe
Austan Goolsbee
Taxation and the Sources of Growth: Estimates from U.S. Multinational Corporations	231	(34)
Jason G. Cummins
Samuel S. Kortum
Contributors	265	(2)
Author Index	267	(4)
Subject Index	271