Year: 1987
Type: report
Abstract: In a recent review of the literature, Wasylenko (1981) concluded that taxes have very little effect on interregional business location decisions. The present study examines the impact of state taxes and incentive programs on the spatial distribution of inward foreign direct investment in manufacturing. The results reveal that taxes, which were measured in various ways, deter foreign direct investment. Conversely, states providing tax incentives, financial assistance, and employment assistance tended to have larger numbers of foreign direct investments.
DOI: 10.20955/wp.1987.007
Institution: Federal Reserve Bank of St. Louis
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: gold
OpenAlex ID: W1514976853