Abstract
Governments in Central and East European Countries (CEEC-5; see Table 16.1) intervene to influence the location choice of multinational enterprises (MNEs) by various measures. They provide incentive packages, fiscal and non-fiscal, and they try to shape various location factors in order to lower production costs for foreign firms. One location factor that figures prominently in actual policy-making as well as in the public debate is the corporate income tax rate. What is at issue therefore is, whether tax-rate cuts are an appropriate policy tool for attracting foreign direct investment (FDI)2 and whether FDI responds significantly to changes of the corporate income tax burden in the CEEC-5.KeywordsForeign Direct InvestmentHost CountryForeign Direct Investment InflowEast European CountryForeign Direct Investment FlowThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
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