Does Income Tax Competition Remain Relevant In Attracting FDI? The Case of ASEAN Countries
Journal Title: Journal of Economics, Finance and Management Studies - Year 2024, Vol 7, Issue 08
Abstract
This study evaluates the impact of corporate income tax on foreign direct investment (FDI) in 6 Southeast Asian countries from 1999 to 2022, under the context of the preparation for the Global minimum tax application in many countries in and outside the region. Using classical panel data models (Fixed Effects and Random Effects model), the findings show no significant impact of corporate income tax on FDI inflows to ASEAN nations. Observing the effects of other factors on foreign investments, the study discovers the significant role of infrastructure in attracting FDI for the entire sample. Additionally, we find significant positive impacts of trade openness and significant negative impacts of political stability on FDI inflows for the developing nations in the area. Interestingly, we find positive relationships between economic shocks and FDI and the region's quick recovery of foreign investment flows. Based on the results, we provide several valuable academic and policy suggestions.
Authors and Affiliations
Thi Lam Anh Nguyen
Keywords
Related Articles
- EP ID EP742572
- DOI 10.47191/jefms/v7-i8-24
- Views 88
- Downloads 0
The Influence of the Open Sky on Airlines in Tunisia
The importance of this research is to analyze the impact of open sky on transport air transport in Tunisia and determine the equilibrium price, quantities and profit of each airline by adopting Analysis of the effect of...
Determinants of Demand for Sharia Housing in Palembang Case Study: Ahad Mandiri Property
This study analyze the factors that influence consumer decisions in choosing Housing Loans in palembang City through Developer Property Shariah (DPS). This study uses primary data with closed questionnaire and likert sca...
The Effect of Transformational Leadership on Employees' Adaptive Performance: The Mediating Role of Job Satisfaction and Work Engagement
This study aims to examine and analyze the effect of transformational leadership on employees' adaptive performance through the mediating roles of job satisfaction and work engagement. This research employs a quantitativ...
The Effect of Perceived Quality and Brand Image on Brand Loyalty through Brand Trust as a Mediation Variable (Study of Samsung Smartphone Users in Semarang City)
The users of Smartphone Indonesia continue to increase every year. This causes the competition of business actors in the technology sector to increase, so that business actors in the technology sector must implement stra...
The Influence of Asset Growth, Profitability, and Firm Size on the Capital Structure of Islamic Banking in the World Period 2011-2020
This study aimed to know the influence of asset growth, profitability, and firm size on the capital structure of Islamic banking in the world. This study is quantitive with an explanatory approach. The population in this...