Profit-shifting and Measured Productivity of Multinational Firms
This paper examines the differences in total factor productivity (TFP) between multinationals and domestic firms before and after tax rate changes to investigate whether the host country corporate tax rate has a significant in fluence on the measured TFP advantage of multinational companies. Using a...
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| Format: | Journal article |
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2011
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| _version_ | 1797089412037738496 |
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| author | Maffini, G Mokkas, S |
| author_facet | Maffini, G Mokkas, S |
| author_sort | Maffini, G |
| collection | OXFORD |
| description | This paper examines the differences in total factor productivity (TFP) between multinationals and domestic firms before and after tax rate changes to investigate whether the host country corporate tax rate has a significant in fluence on the measured TFP advantage of multinational companies. Using a sample of approximately 16,000 European firms (1998-2004), we find that a 10 percentage points cut in the statutory corporate tax rate would increase multinationals' measured TFP by about 10 per cent relative to domestic firms, consistent with profit-shifting by multinationals. At the sample mean, this would imply a 44 per cent increase in the TFP advantage of multinationals. |
| first_indexed | 2024-03-07T03:03:48Z |
| format | Journal article |
| id | oxford-uuid:b1d6932d-dc87-4df2-971c-2755d7b5dc39 |
| institution | University of Oxford |
| last_indexed | 2024-03-07T03:03:48Z |
| publishDate | 2011 |
| record_format | dspace |
| spelling | oxford-uuid:b1d6932d-dc87-4df2-971c-2755d7b5dc392022-03-27T04:07:03ZProfit-shifting and Measured Productivity of Multinational FirmsJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:b1d6932d-dc87-4df2-971c-2755d7b5dc39Saïd Business School - Eureka2011Maffini, GMokkas, SThis paper examines the differences in total factor productivity (TFP) between multinationals and domestic firms before and after tax rate changes to investigate whether the host country corporate tax rate has a significant in fluence on the measured TFP advantage of multinational companies. Using a sample of approximately 16,000 European firms (1998-2004), we find that a 10 percentage points cut in the statutory corporate tax rate would increase multinationals' measured TFP by about 10 per cent relative to domestic firms, consistent with profit-shifting by multinationals. At the sample mean, this would imply a 44 per cent increase in the TFP advantage of multinationals. |
| spellingShingle | Maffini, G Mokkas, S Profit-shifting and Measured Productivity of Multinational Firms |
| title | Profit-shifting and Measured Productivity of Multinational Firms |
| title_full | Profit-shifting and Measured Productivity of Multinational Firms |
| title_fullStr | Profit-shifting and Measured Productivity of Multinational Firms |
| title_full_unstemmed | Profit-shifting and Measured Productivity of Multinational Firms |
| title_short | Profit-shifting and Measured Productivity of Multinational Firms |
| title_sort | profit shifting and measured productivity of multinational firms |
| work_keys_str_mv | AT maffinig profitshiftingandmeasuredproductivityofmultinationalfirms AT mokkass profitshiftingandmeasuredproductivityofmultinationalfirms |