Global Corporate Tax Competition

Recently, governments policymakers have observed how§export oriented foreign firms previously established§in their region have decided to move to countries in§completely different areas of the world. An example§comes from Mexico, where firms decided to relocate to§China, Czech Republic, Malaysia, and Thailand.§Policymakers concluded that among several factors§affecting FDI inflows, corporate tax rates appear to§be not competitive. Hence, could it be possible that§policymakers in China, Czech Republic, or Malaysia§have observed that corporate taxes represent a factor§towards increasing competitiveness, and given the§high mobility of capital of these days, they have§embarked on a corporate tax competition to attract§internationally mobile firms. Is it possible that§Mexico, China, and Czech Republic could be presenting§a degree of corporate tax competition to attract FDI?§Does corporate tax competition among countries from§far away geographical regions of the world occur?§Thus, the aim of this book is to evaluate the§possibility of a global corporate tax competition§scheme. The book is addressed to professionals in§public finance, research economists, and policymakers. Recently, governments policymakers have observed how§export oriented foreign firms previously established§in their region have decided to move to countries in§completely different areas of the world. An example§comes from Mexico, where firms decided to relocate to§China, Czech Republic, Malaysia, and Thailand.§Policymakers concluded that among several factors§affecting FDI inflows, corporate tax rates appear to§be not competitive. Hence, could it be possible that§policymakers in China, Czech Republic, or Malaysia§have observed that corporate taxes represent a factor§towards increasing competitiveness, and given the§high mobility of capital of these days, they have§embarked on a corporate tax competition to attract§internationally mobile firms. Is it possible that§Mexico, China, and Czech Republic could be presenting§a degree of corporate tax competition to attract FDI?§Does corporate tax competition among countries from§far away geographical regions of the world occur?§Thus, the aim of this book is to evaluate the§possibility of a global corporate tax competition§scheme. The book is addressed to professionals in§public finance, research economists, and policymakers.