Local tax incentives and behavior of foreign enterprises: evidence from a large developing country

• Main Authors: XING, Jing, CUI, Wei, QI, Xi
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2018
• Subjects: tax competition; FDI; investment; profit; Accounting; Taxation
• Online Access: https://ink.library.smu.edu.sg/soa_research/1848; https://ink.library.smu.edu.sg/context/soa_research/article/2877/viewcontent/SSRN_id3104973.pdf
• Institution: Singapore Management University

We analyze how profit reporting and investment behavior of foreign enterprises respond to local tax incentives in China, a large developing country. Using firm-level data between 2000 and 2013 from China’s industrial enterprise survey, we first provide strong evidence for tax competition among Chine...