Foreign direct investment motivations and knowledge acquisition from MNEs in overseas subsidiaries

2014 ◽  
Vol 31 (2) ◽  
pp. 104-115 ◽  
Author(s):  
Byung Il Park ◽  
Jiyul Choi
Keyword(s):  
Foreign Direct Investment ◽  
Knowledge Acquisition ◽  
Direct Investment ◽  
Investment Motivations ◽  
Overseas Subsidiaries

scholarly journals Is Foreign Direct Investment Effective From The Perspective Of Tax Avoidance? An Analysis Of Tax Avoidance Through The International Transfer Pricing Behaviors Of Korean Corporations

2016 ◽  
Vol 32 (3) ◽  
pp. 917-934
Author(s):  
Sung Jin Park ◽  
Woo Jin Park ◽  
Eun Jung Sun ◽  
Sohee Woo
Keyword(s):  
Foreign Direct Investment ◽  
Empirical Analysis ◽  
Direct Investment ◽  
Transfer Pricing ◽  
Tax Avoidance ◽  
Multinational Companies ◽  
Parent Company ◽  
Tax Credits ◽  
Corporate Tax ◽  
Overseas Subsidiaries

This study examines whether multinational companies carry out tax avoidance through subsidiaries. An empirical analysis was conducted of 4,585 Korean firms from 2001 to 2010 by company and year. The results are as follows. First, MNCs that have become more internationally diversified through the establishment of overseas subsidiaries generally show a higher tendency to avoid tax. Thus, the analysis results show a positive correlation between globally diversified MNCs and corporate tax avoidance. This correlation is established due to the firms' active use of tax strategies (investment tax credits, tax cuts) applicable to the various countries in which they have expanded their businesses. Second, the analysis results showed that these firms actively avoided tax with overseas transfer pricing behaviors when compared to companies without overseas subsidiaries. Thus, the adjustment of sales prices and purchase value through actual transactions increased the propensity of the parent company to avoid tax. 

PFI OECD - Framework for Strong investment Policy

2015 ◽  
pp. 151-156
Author(s):  
A. Koval
Keyword(s):  
Sustainable Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Comprehensive Approach ◽  
Investment Policy ◽  
Policy Framework ◽  
Investment Climate ◽  
Systematic Monitoring ◽  
Investment Tool ◽  
National Investment

The improving investment climate objective requires a comprehensive approach to the regulatory framework enhancement. Policy Framework for Investment (PFI) is a significant OECD’s investment tool which makes possible to identify the key obstacles to the inflow foreign direct investment and to determine the main measures to overcome them. Using PFI by Russian authorities would allow a systematic monitoring of the national investment policy and also take steps to improve the effectiveness of sustainable development promotion regulations.

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