TY  - JOUR
AU  - Hines,James R., Jr.
TI  - Tax Policy and the Activities of Multinational Corporations
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5589
PY  - 1996
Y2  - May 1996
UR  - http://www.nber.org/papers/w5589
L1  - http://www.nber.org/papers/w5589.pdf
N1  - Author contact info:
James R. Hines
Department of Economics
University of Michigan
343 Lorch Hall
611 Tappan Street
Ann Arbor, MI  48109-1220
Tel: 734/764-2320
Fax: 734/764-2769
E-Mail: jrhines@umich.edu
M2  - featured in NBER digest on 1996-12-01
AB  - 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.
ER  -