Arbeitspapier
Exports, Foreign Direct Investment and the Costs of Corporate Taxation
This paper develops a model of a monopolistically competitive industry with extensive and intensive business investment and shows how these margins respond to changes in average and marginal corporate tax rates. Intensive investment refers to the size of a firm's capital stock. Extensive investment refers to the firm's production location and reflects the trade-off between exports and foreign direct investment as alternative modes of foreign market access. The paper derives comparative static effects of the corporate tax and shows how the cost of public funds depends on the measures of effective marginal and average tax rates and on the behavioral elasticities of extensive and intensive investment.
- Language
-
Englisch
- Bibliographic citation
-
Series: FIW Working Paper ; No. 5
- Classification
-
Wirtschaft
- Subject
-
Competitiveness
competitive model
industry
monopol
business investment
tax rates
corporate taxation
capital stock
effective average tax rate
effective marginal tax rate
elasticities of investment
FDI
- Event
-
Geistige Schöpfung
- (who)
-
Keuschnigg, Christian
- Event
-
Veröffentlichung
- (who)
-
FIW - Research Centre International Economics
- (where)
-
Vienna
- (when)
-
2007
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Keuschnigg, Christian
- FIW - Research Centre International Economics
Time of origin
- 2007