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Taxes and the location of production: evidence from a panel of US multinationals

Abstract:

This paper investigates a set of strategic decisions facing US firms. We develop a simple theoretical framework in which firms choose whether or not to serve a foreign market, and if so whether by exporting, or by becoming a multinational. The model is applied to a sample of US firms choosing whether and how to supply the European market. We take Europe to be a single market and allow the firms to choose to produce in one of the UK, France and Germany. In the empirical application we find tha...

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Publication date:
1998-01-01
UUID:
uuid:057485a6-0f0f-4c6d-821d-b70028f0490d
Local pid:
oai:eureka.sbs.ox.ac.uk:1291
Deposit date:
2011-12-02

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