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Tax-based Capital Controls’ Efficacy at Affecting the Composition of Foreign Capital

Donnally, Sandra LU (2016) NEKN01 20161
Department of Economics
Abstract
This paper investigates whether countries can use tax-based forms of capital controls to affect the share of foreign direct investment (FDI) relative to debt. Doing so might enable a country to influence capital-recipient countries’ foreign capital towards FDI and away from debt. The empirical model and dependent, explanatory, and control variables have been drawn from existing literature and have been applied to a panel data set consisting of 20 countries spanning 1999 to 2011. The main empirical findings show that a tax preference for FDI is more effective and persistent than a tax discrimination against debt investments.
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author
Donnally, Sandra LU
supervisor
organization
course
NEKN01 20161
year
type
H1 - Master's Degree (One Year)
subject
keywords
foreign capital, capital controls, foreign direct investments, debt
language
English
id
8891376
date added to LUP
2016-09-12 11:05:09
date last changed
2016-09-12 11:05:09
@misc{8891376,
  abstract     = {This paper investigates whether countries can use tax-based forms of capital controls to affect the share of foreign direct investment (FDI) relative to debt. Doing so might enable a country to influence capital-recipient countries’ foreign capital towards FDI and away from debt. The empirical model and dependent, explanatory, and control variables have been drawn from existing literature and have been applied to a panel data set consisting of 20 countries spanning 1999 to 2011. The main empirical findings show that a tax preference for FDI is more effective and persistent than a tax discrimination against debt investments.},
  author       = {Donnally, Sandra},
  keyword      = {foreign capital,capital controls,foreign direct investments,debt},
  language     = {eng},
  note         = {Student Paper},
  title        = {Tax-based Capital Controls’ Efficacy at Affecting the Composition of Foreign Capital},
  year         = {2016},
}