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Trade, investment and taxation: Policy linkages
- Source: Transnational Corporations, Volume 25, Issue 2, Sep 2018, p. 1 - 8
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- 24 Sep 2018
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Abstract
International trade, investment and tax policies are inextricably linked. Tax is a key investment determinant influencing the attractiveness of a location or an economy for international investors, particularly those heavily engaged in international trade. Taxation, tax relief and other fiscal incentives are key policy tools to increase exports and attract investors. Investors, once established, add to economic activity and the tax base of host economies, and make direct and indirect fiscal contributions. And international investors and MNEs, by the nature of their international operations and intra-firm trade, have opportunities for tax arbitrage between jurisdictions and for tax avoidance.
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