Foreign direct investment, tax competition and social expenditure

Holger Görg; Hassan Molana; Catia Montagna

doi:10.1016/j.iref.2008.02.009

Foreign direct investment, tax competition and social expenditure

Holger Görg, Hassan Molana, Catia Montagna

Research output: Contribution to journal › Article › peer-review

22 Citations (Scopus)

Abstract

The aim of this paper is to make a first step towards studying the role of social expenditure and its interaction with corporate taxation in determining the destination of foreign direct investment (FDI) flows. Using panel data for 18 OECD countries and measuring the extent of social welfare policies by the (public social expenditure)/GDP ratio, we find strong support for the conjecture that redistributive social welfare state policies are valued by multinationals as, for instance, they may signal a government’s commitment to social stability.

Original language	English
Pages (from-to)	31-37
Journal	International Review of Economics and Finance (IREF)
Volume	18
Issue number	1
DOIs	https://doi.org/10.1016/j.iref.2008.02.009
Publication status	Published - Jan 2009

Keywords

Foreign direct investment
Tax competition
Social policy

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1016/j.iref.2008.02.009

22 Citations
1 Discussion paper

Dundee Discussion Papers in Economics 198: Foreign direct investment, tax competition and social expenditure
Görg, H., Molana, H. & Montagna, C., 2007, University of Dundee, (Dundee Discussion Papers in Economics; no. 198).
Research output: Working paper/Preprint › Discussion paper

File

Cite this

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AB - The aim of this paper is to make a first step towards studying the role of social expenditure and its interaction with corporate taxation in determining the destination of foreign direct investment (FDI) flows. Using panel data for 18 OECD countries and measuring the extent of social welfare policies by the (public social expenditure)/GDP ratio, we find strong support for the conjecture that redistributive social welfare state policies are valued by multinationals as, for instance, they may signal a government’s commitment to social stability.

KW - Foreign direct investment

KW - Tax competition

KW - Social policy

U2 - 10.1016/j.iref.2008.02.009

DO - 10.1016/j.iref.2008.02.009

M3 - Article

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JO - International Review of Economics and Finance (IREF)

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ER -

Foreign direct investment, tax competition and social expenditure

Abstract

Keywords

UN SDGs

Access to Document

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Research output

Dundee Discussion Papers in Economics 198: Foreign direct investment, tax competition and social expenditure

Cite this