TY  - JOUR
AU  - Sinn,Hans-Werner
TI  - Taxation and the Birth of Foreign Subsidiaries
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3519
PY  - 1990
Y2  - November 1990
UR  - http://www.nber.org/papers/w3519
L1  - http://www.nber.org/papers/w3519.pdf
N1  - Author contact info:
Hans-Werner Sinn
Ifo Institute -
Leibniz Institute for Economic Research
at University of Munich
Poschingerstr. 5
81679 Munich
GERMANY
Tel: 49-89-21802748
Fax: 49-89-397303;49-89-8506434 (home)
E-Mail: sinn@ifo.de
AB  - The paper studies the influence of tax policy on foreign direct investment with a particular emphasis on immature subsidiaries. Among other things it shows that taxes on repatriations reduce the subsidiary's "birth weight", that lump sum taxes reduce its cost of capital, and that the possibility of deferral increases this cost. The paper rejects the popular weighted average specification of the subsidiary's cost of capital.
ER  -