haku: @author Sadka, E. / yhteensä: 10
viite: 8 / 10
| Tekijä: | Razin, A. Sadka, E. |
| Otsikko: | Efficient investment incentives in the presence of capital flight |
| Lehti: | Journal of International Economics
1991 : AUG, VOL. 31:1-2, p. 171-181 |
| Asiasana: | INVESTMENT INCENTIVES CAPITAL TRANSFER TAX FOREIGN INVESTMENT GOVERNMENT EEC |
| Kieli: | eng |
| Tiivistelmä: | The efficiency of quantity restrictions on capital exports is examined. The accompanying set of taxes is also investigated. When a government can effectively tax foreign-source income, then it is not efficient to impose restriction on capital exports and the optimal tax rates on foreign-source and domestic-source income are the same. An efficient allocation of domestic savings between foreign and domestic investment is obtained. However, when the government cannot tax foreign source income it is optimal to impose such a restriction so as to induce overinvestment in domestic capital. This is why the European Community searches for ways to enforce taxation of foreign source income so as to reduce incentives to locate capital abroad. |
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