@article{article_434909, title={THE IMPACT OF FLAT TAX RATES ON FOREIGN DIRECT INVESTMENT}, journal={Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi}, volume={40}, pages={1–13}, year={2018}, DOI={10.14780/muiibd.434909}, author={Hızarcı Beşer, Berna and Beşer, Mustafa Kemal}, keywords={Flat Tax,Tax Competition,Foreign Direct Investment}, abstract={<p style="font-size:12.6px;">Main aim of this paper is to investigate the effect of corporate income tax rates on foreign direct </p> <p style="font-size:12.6px;">investment (FDI) in the countries which has flat tax application in the pattern of long-run relationship </p> <p style="font-size:12.6px;">of FDI and its determinants which are known as market size, labor cost, trade barrier, growth rate, </p> <p style="font-size:12.6px;">openness, trade deficit, and tax rates. For the empirical analysis we use annual data for 1990-2014 for the </p> <p style="font-size:12.6px;">countries which have applied flat tax reforms and smaller corporate income tax rates in order to focus </p> <p style="font-size:12.6px;">and draw out the effect of tax rate instrument on capital movements in the point of tax competition. </p> <p style="font-size:12.6px;">According to panel regression and cointegration results, corporate tax rate has significant and negative </p> <p style="font-size:12.6px;">impact on FDI. </p>}, number={1}, publisher={Marmara University}