Regional vs. Global Financing Strategies for U.S. MNEs

Document Type

Contribution to Book

Language

eng

Format of Original

22 p.

Publication Date

2004

Publisher

Emerald (JAI Press)

Source Publication

Research in Global Strategic Management

Source ISSN

0762310944

Abstract

Despite declining in 2001, foreign direct investment (FDI) surged during the 1990s. As a result, current levels of FDI flows are triple their 1990 levels. It is well documented in the literature that FDI occurs in large part among countries that are geographically close. It is also well established that the NAFTA had a significant impact on both U.S. FDI flows and hence FDI stocks. In addition, tax policies and tax treaties have been shown to be important drivers of U.S. FDI. The analysis presented in this paper confirms these earlier results. We extend the analysis, however, to show that tax treaties have a significant impact on financing patterns of U.S. MNE activities abroad. Based on these results, we argue that bilateral tax treaties should be an important part of trade agreements between the United States and Latin American partners in anticipation of a Free Trade Agreement of the Americas (FTAA). Special

Comments

"Regional vs. Global Financing Strategies for U.S. MNEs," in Research in Global Strategic Management. Eds. Joseph P Daniels, Walid Hejazi, Marc von der Ruhr. Amsterdam: Emerald Group Publishing Limited, 2004: 49-66. DOI.

Link to Full Text

Share

COinS