scholarly journals Distributional Effects of Globalization in Developing Countries

2007 ◽  
Author(s):  
Pinelopi Koujianou Goldberg ◽  
Nina Pavcnik
Keyword(s):  
Developing Countries ◽  
Distributional Effects

scholarly journals Distributional Effects of Globalization in Developing Countries

2007 ◽  
Vol 45 (1) ◽  
pp. 39-82 ◽  
Author(s):  
Pinelopi Koujianou Goldberg ◽  
Nina Pavcnik
Keyword(s):  
Developing Countries ◽  
Income Inequality ◽  
Empirical Evidence ◽  
Empirical Research ◽  
Future Research ◽  
Distributional Effects

The authors discuss recent empirical research on how globalization has affected income inequality in developing countries. They begin with a discussion of conceptual issues regarding the measurement of globalization and inequality. Next, they present empirical evidence on the evolution of globalization and inequality in several developing countries during the 1980s and 1990s. The authors then examine the channels through which globalization may have affected inequality, discussing theory and evidence in parallel. They conclude with directions for future research.

scholarly journals An Assessment of Global Formula Apportionment

2019 ◽  
Vol 19 (213) ◽  
Author(s):  
Ruud A. Mooij ◽  
Li Liu ◽  
Dinar Prihardini
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Tax Competition ◽  
Direct Investment ◽  
Profit Shifting ◽  
Distributional Effects ◽  
Federal States ◽  
Formula Apportionment ◽  
Large Weight ◽  
The Impact

Formula apportionment as a way to attribute taxable profits of multinationals across jurisdictions is receiving increased attention. This paper reviews existing literature and discusses experiences in selective federal states to evaluate the economic properties of formula apportionment relative to the current international tax regime that is based on separate accounting. It highlights major advantages, such as the elimination of profit shifting within multinational groups; and it discusses new distortions and the impact on tax competition. The analysis exploits different datasets to assess the direct revenue implications for individual countries under alternative formulas. The distributional effects across countries are found to be large, reflecting major discrepancies between where profits are currently attributed and where factors of production are located or sales take place. The largest losses appear in investment hubs (i.e. countries with a disproportionate ratio of foreign direct investment to GDP), while several large advanced countries are likely to gain. Developing countries gain most likely if employment receives a large weight in the formula; they also tend to benefit, on average, from a formula based on sales by destination.

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