NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Tax Policy and the Activities of Multinational Corporations

James R. Hines, Jr.

NBER Working Paper No. 5589
Issued in May 1996
NBER Program(s):   ITI   PE

This paper reviews quantitative studies of the impact of international tax rules on the financial and real behavior of multinational firms. The evidence, much of it recent, indicates that taxation significantly influences foreign direct investment, corporate borrowing, transfer pricing, dividend and royalty payments, R&D activity, exports, bribe payments, and location choices. While taxes appear to influence a wide range of activity, the literature does not offer many subtle tests designed to distinguish different theories of the effects of taxation on multinational firms. The paper evaluates the reliability of existing evidence and its implications for the design of international tax policy.

download in pdf format
   (2550 K)

email paper

This paper is available as PDF (2550 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w5589

Published: in Alan J. Auerbach, ed. Fiscal Policy: Lessons From Economic Research(Cambridge, MA: MIT Press, 1997), pp.401-445.

Users who downloaded this paper also downloaded these:
Hines Introduction to "International Taxation and Multinational Activity"
harris, Morck, and Slemrod Income Shifting in U.S. Multinational Corporations
Hines w4397 Altered States: Taxes and the Location of Foreign Direct Investment in America
Hines and Rice w3477 Fiscal Paradise: Foreign Tax Havens and American Business
Bernard and Weiner Multinational Corporations, Transfer Prices, and Taxes: Evidence from the U.S.Petroleum Industry
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us