The dynamics of FDI relocation of production.(RESEARCH NOTE)(foreign direct investments)
Publication Date: 01-AUG-07
Publication Title: International Advances in Economic Research
Format: Online
Author: de Mello-Sampayo, Felipa ; de Sousa-Vale, Sofia ; Camoes, Francisco

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Description

JEL D80 * E62 * F20

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This paper shows that a home country tax rate deduction increases the volatility of the expected profits, making offshoring appear to be more risky. One policy implication of our results is that, in order to delay relocation of multinational enterprises (MNE's) production from the home country, a government should adopt tax rate deduction rather than a non-tax subsidy because the...



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