The Importance of Corporate Taxation for FDI Attractiveness of Southeast European Countries

Authors

  • Ines Kersan-Škabić Juraj Dobrila University of Pula, Faculty of Economics and Tourism “Dr. Mijo Mirković”, Croatia

DOI:

https://doi.org/10.2298/PAN1501105K

Keywords:

FDI, SEE, Corporate tax rates

Abstract

The aim of this paper is to research the determinants of FDI inflows in the SEE region with a special emphasis on corporate tax rates. The panel data analysis (GMM methodology) was conducted on six countries in the period 2000-2011 in two versions: as gravity model based on bilateral FDI inflows and on the total FDI inflows (and inward stock). The results pointed the most important determinants for attracting FDI in SEE countries are market size (population), growth rates, GDP per capita, and wages. Institutional variables and corporate tax rates were not significant in the analysis of flows, but they become significant in the analysis of FDI inward stock.

Key words: FDI, SEE, Corporate tax rates.
JEL: F21, F23, H25.

Downloads

Download data is not yet available.

Author Biography

Ines Kersan-Škabić, Juraj Dobrila University of Pula, Faculty of Economics and Tourism “Dr. Mijo Mirković”, Croatia

The aim of this paper is to research the determinants of FDI inflows in the SEE region with a special emphasis on corporate tax rates. The panel data analysis (GMM methodology) was conducted on six countries in the pe- riod 2000-2011 in two versions: as gravity model based on bilateral FDI inflows and on the total FDI inflows (and inward stock). The results pointed the most important determinants for attracting FDI in SEE countries are market size (population), growth rates, GDP per capita, and wages. Institutional variables and corporate tax rates were not significant in the analysis of flows, but they become significant in the analysis of FDI inward stock.

Downloads

Published

2015-10-10

How to Cite

Kersan-Škabić, I. (2015). The Importance of Corporate Taxation for FDI Attractiveness of Southeast European Countries. Panoeconomicus, 62(1), 105–122. https://doi.org/10.2298/PAN1501105K

Issue

Vol. 62 No. 1 (2015)

Section

Scientific review