Do Taxes Matter for FDI Flows to Mexico?
There have been several studies focusing on the factors influencing the location decision of multinationals. However, the empirical literature considering tax policies as a determinant of foreign direct investment (FDI) has been limited in several respects, with most studies focused on developed cou...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2010
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| Online Access: | https://eprints.nottingham.ac.uk/23676/ |
| _version_ | 1848792611427450880 |
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| author | Gonzalez del Real, Pablo |
| author_facet | Gonzalez del Real, Pablo |
| author_sort | Gonzalez del Real, Pablo |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | There have been several studies focusing on the factors influencing the location decision of multinationals. However, the empirical literature considering tax policies as a determinant of foreign direct investment (FDI) has been limited in several respects, with most studies focused on developed countries and exclusively considering host country taxes. The aim of this paper is to extend those boundaries by analyzing the effect of taxes on FDI flows to a developing country and incorporating both host and home country tax rates as determinants.
This paper estimates the effect of taxes on FDI flows to Mexico by considering a panel of the eight most representative investing countries from 1990 to 2008. Besides the tax variables, other macroeconomic factors as important location determinants were included to the model. The estimates show that after controlling for specific country effects, the corporate tax rate of both, source and host country, are important determinants of FDI flows to Mexico. This paper also demonstrates that investors’ response to taxes differ depending on the tax system of their home country. This is, the response of investors from countries under a worldwide taxation system differ from that of investors from a territorial tax system. |
| first_indexed | 2025-11-14T18:47:09Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-23676 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T18:47:09Z |
| publishDate | 2010 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-236762018-01-25T06:31:27Z https://eprints.nottingham.ac.uk/23676/ Do Taxes Matter for FDI Flows to Mexico? Gonzalez del Real, Pablo There have been several studies focusing on the factors influencing the location decision of multinationals. However, the empirical literature considering tax policies as a determinant of foreign direct investment (FDI) has been limited in several respects, with most studies focused on developed countries and exclusively considering host country taxes. The aim of this paper is to extend those boundaries by analyzing the effect of taxes on FDI flows to a developing country and incorporating both host and home country tax rates as determinants. This paper estimates the effect of taxes on FDI flows to Mexico by considering a panel of the eight most representative investing countries from 1990 to 2008. Besides the tax variables, other macroeconomic factors as important location determinants were included to the model. The estimates show that after controlling for specific country effects, the corporate tax rate of both, source and host country, are important determinants of FDI flows to Mexico. This paper also demonstrates that investors’ response to taxes differ depending on the tax system of their home country. This is, the response of investors from countries under a worldwide taxation system differ from that of investors from a territorial tax system. 2010-12 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/23676/1/Final.pdf Gonzalez del Real, Pablo (2010) Do Taxes Matter for FDI Flows to Mexico? [Dissertation (University of Nottingham only)] (Unpublished) |
| spellingShingle | Gonzalez del Real, Pablo Do Taxes Matter for FDI Flows to Mexico? |
| title | Do Taxes Matter for FDI Flows to Mexico? |
| title_full | Do Taxes Matter for FDI Flows to Mexico? |
| title_fullStr | Do Taxes Matter for FDI Flows to Mexico? |
| title_full_unstemmed | Do Taxes Matter for FDI Flows to Mexico? |
| title_short | Do Taxes Matter for FDI Flows to Mexico? |
| title_sort | do taxes matter for fdi flows to mexico? |
| url | https://eprints.nottingham.ac.uk/23676/ |