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docs.google.com/spreadsheets/d/1puv8P-yW_4tsikYxW9JlsTvBMAI2A0n1oJ0cY-xMcz8/edit#gid=0
Abstract:
This paper uses a new dataset that dramatically increases the country coverage of corporate tax rate and tax incentives to analyse their effectiveness as policy tools to attract FDI. The addition of both sectoral and temporal variation significantly improves upon the identification approaches of previous studies. The preliminary results show that higher corporate taxes have a negative impact on inwards FDI, but that in aggregate tax holidays to not seem to be important. Policy makers that lose significant fiscal resources to tax holidays may therefore be overemphasising their importance in attracting internationally mobile capital.
