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Taxation And The Birth Of Foreign Subsidiaries

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  • SINN, H.W.
Abstract
The paper studies the influence of tax policy on foreign direct investment with a particular emphasis on immature subsidiaries. Among other things it shows that taxes on repatriations reduce the subsidiary's "birth weight", that lump sum taxes reduce its cost of capital, and that the possibility of deferral increases this cost. The paper rejects the popular weighted average specification of the subsidiary's cost of capital.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Sinn, H.W., 1990. "Taxation And The Birth Of Foreign Subsidiaries," Papers 66, Princeton, Woodrow Wilson School - Discussion Paper.
    • Handle: RePEc:fth:priwdp:66
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    References listed on IDEAS

    as
    1. Assaf Razin & Joel Slemrod, 1990. "Taxation in the Global Economy," NBER Books, National Bureau of Economic Research, Inc, number razi90-1.
    2. repec:bla:econom:v:41:y:1974:i:161:p:25-34 is not listed on IDEAS
    3. Edwards,Jeremy & Franks,Julian & Mayer,Colin & Schaefer,Stephen (ed.), 1986. "Recent Developments in Corporate Finance," Cambridge Books, Cambridge University Press, number 9780521329644, September.
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    6. Mervyn A. King & Don Fullerton, 1984. "The United Kingdom," NBER Chapters, in: The Taxation of Income from Capital: A Comparative Study of the United States, the United Kingdom, Sweden, and Germany, pages 31-86, National Bureau of Economic Research, Inc.
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    10. Hans‐Werner Sinn, 1984. "Die Bedeutung des Accelerated Cost Recovery System für den internationalen Kapitalverkehr," Kyklos, Wiley Blackwell, vol. 37(4), pages 542-576, November.
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    12. Mitsuo Sato & Richard M. Bird, 1975. "International Aspects of the Taxation of Corporations and Shareholders (Aspects internationaux de l'imposition des sociétés et des actionnaires) (Aspectos internacionales de la tributación de socie," IMF Staff Papers, Palgrave Macmillan, vol. 22(2), pages 384-455, July.
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