Labor Taxation and FDI Decisions in the European Union

Autor:	Åsa Hansson, Karin Olofsdotter
Rok vydání:	2013
Předmět:	Estimation Selection bias Economics and Econometrics Labour economics Production cost media_common.quotation_subject International economics Foreign direct investment Investment (macroeconomics) European integration Economics media_common.cataloged_instance European union Panel data media_common
Zdroj:	Open Economies Review. 25:263-287
ISSN:	1573-708X 0923-7992
DOI:	10.1007/s11079-013-9282-8
Popis:	This paper uses panel data on bilateral FDI stocks in the European Union to empirically analyze the impact of labor and corporate taxations on FDI decisions. While the effect of corporate taxes on FDI is well documented, the impact of labor taxes on FDI has barely been explored. This is surprising since labor taxation may influence FDI as well; the taxation of labor affects the production cost and the ability to attract and retain productive labor, and thereby it also, ultimately, impacts the return to the investment. By employing a Heckman two-step estimation model, which controls for possible sample selection bias due to many zero bilateral observations, we find that labor taxes do influence FDI decisions.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::c4a3395067334df940c450edb1c936a7 https://doi.org/10.1007/s11079-013-9282-8 Zobrazit plný text záznamu Full text from SpringerLink