Abstract
We empirically investigate the impact of tax complexity on FDI at firm level, employing a large database of German multinational enterprises that is administrated by Deutsche Bundesbank. More precisely, we analyze the location choice of 4474 new German FDI projects in OECD countries from 2005 to 2009. The results suggest that tax complexity has a repressive effect on FDI. Moreover, we find that the magnitude of this effect substantially depends on the level of the statutory corporate income tax rate.
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