A Pecking Order Theory of Capital Inflows and International Tax Principles
28 Pages Posted: 15 Feb 2006
Date Written: April 1996
Abstract
Even though financial markets today show a high degree of integration, the world capital market is still far from the textbook story of high capital mobility. The purpose of this paper is to highlight key sources of market failure in the context of international capital flows and to provide guidelines for efficient tax structure in the presence of capital market imperfections. The analysis distinguishes three types of international capital flows: foreign portfolio debt investment, foreign portfolio equity investment, and foreign direct investment. The paper emphasizes the efficiency of a nonuniform tax treatment of the various vehicles of international capital flows.
JEL Classification: F21, F35, H25, H30
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Taxation of Asset Income in the Presence of a World Securites Market
By Roger H. Gordon and Hal R. Varian
-
By Assaf Razin, Efraim Sadka, ...
-
Do Debt Flows Crowd Out Equity Flows or the Other Way Round?
By Assaf Razin, Efraim Sadka, ...