The question we will address is how sensitive US foreign investors are to corporate tax changes, particularly FDI to Asia. In economic terms, we investigate the size and significance of the semi-elasticity of inward FDI from the US to changes in the US’s corporate tax rate. This is a relevant question given the sweeping tax bill passed in December 2017 in the US, which provided important incentives for US corporations working abroad to repatriate profits back to the US and to heavily invest in capital-intensive production at home.

You May Also Like