《税收结构与FDI》.pdfVIP

Tax Structures and FDI The Deterrent Effects of Complexity and Uncertainty Kelly Edmiston† Georgia State University Shannon Mudd†† Thunderbird, The American Graduate School of International Management Neven Valev† Georgia State University Abstract In this study we examine the connection between the varied experiences of the transition countries in attracting FDI and their diverse experiences in transforming their tax structures to be consistent with a market economy. In particular, we study whether complexity and uncertainty in their tax laws have deterred foreign direct investment by increasing transaction costs, the compliance burden and the unpredictability of tax liabilities. Our results indicate that complexity and uncertainty, in the sense of multiple tax rates, indeterminate language in the tax law, and inconsistent changes in the tax laws have a significant negative effect on inward foreign direct investment. JEL Classification: H25, F21, F23 __________________________________________________________________ The authors would like to thank the participants at the Southeast Theory and International Economics conference and the Academy of International Business conference as well as James Alm, Richard Bird, and two anonymous referees for valuable comments and suggestions. Any remaining errors and omissions are, of course, entirely the responsibility of the authors. †Department of Economics, Andrew Young School of Policy Studies, Georgia State University, Atlanta, Georgia 30303. ††Corresponding author: 42 Lancheste