Outward Foreign Direct Investment and US Exports, Jobs, and R&D

Outward Foreign Direct Investment and US Exports, Jobs, and R&D PDF

Author: Gary Clyde Hufbauer

Publisher: Peterson Institute for International Economics

Published: 2013-09-19

Total Pages: 149

ISBN-13: 0881326682

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It is not in the US interest to adopt tax and regulatory policies that would discourage global engagement by US multinational corporations (MNCs). Research presented in this book shows that the expansion of foreign affiliates of US MNCs is positively associated with more production, greater employment, higher exports, and more research and development (R&D) in the United States. These findings suggest that less investment abroad by US firms would weaken—not strengthen—the US economy. This analysis by no means implies that there are only winners and no losers from outward investment. Changing patterns of MNC investment, like changing patterns of technology and production more generally, contribute to job losses and dislocations for some workers and to new opportunities for others. To benefit the US economy and US workers most broadly, the United States will want to search for ways to strengthen the appeal of the United States as a base for the operations of international firms. High among the recommendations to accomplish this, the United States should adopt a territorial tax system, like the great majority of developed countries.

Foreign Direct Investment in the U.S.

Foreign Direct Investment in the U.S. PDF

Author: Michael F. Crowley

Publisher: Michael F Crowley

Published:

Total Pages: 237

ISBN-13:

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This book is a survey and discussion of some of the issues surrounding foreign direct investment in the U.S., focusing on economic impacts. Written during the late-1980's, the time period was one during which Japanese direct investment in the U.S. was sparking considerable controversy and debate about the nature of the contribution such investment made to the U.S. economy.

The Impact of the Tax Cuts and Jobs Act on Foreign Investment in the United States

The Impact of the Tax Cuts and Jobs Act on Foreign Investment in the United States PDF

Author: Mr. Alexander D Klemm

Publisher: International Monetary Fund

Published: 2022-05-06

Total Pages: 30

ISBN-13:

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The 2017 Tax Cuts and Jobs Act (TCJA) sharply reduced effective corporate income tax rates on equity-financed US investment. This paper examines the reform’s impact on US inbound foreign direct investment (FDI) and investment in property, plant and equipment (PPE) by foreign-owned US companies. We first model effective marginal and average tax rates (EMTRs and EATRs) by country, industry, and method of finance, and then use those tax rates to calculate the tax semi-elasticities of inbound FDI and PPE investment. We find that both PPE investment and FDI financed with retained earnings responded positively to the TCJA reform, but FDI financed with new equity or debt did not. In country-level PPE regressions, inclusion of macroeconomic controls renders tax rate coefficients insignificant, suggesting that the increase in PPE investment after TCJA was driven by general economic growth. In regressions of FDI financed with retained earnings, however, tax coefficients were robust to inclusion of macroeconomic controls. As the literature predicts, EATRs have a greater impact on cross-border investment than EMTRs. Country-by-industry regressions showed a larger effect of taxes on PPE investment than aggregate country-level regressions, but industry-level tax rates appear to have no effect on earnings retention.

U. S. Private Foreign Investment

U. S. Private Foreign Investment PDF

Author: United States. Congress. Senate. Committee on Banking and Currency

Publisher:

Published: 1959

Total Pages: 190

ISBN-13:

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Reviews the effects of U.S. private foreign investments on the domestic economy and on the world market. Focuses on the machine tool industry.

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