The determinants of tax haven FDI

Chris Jones*, Yama Temouri

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


This paper examines the determinants of a multinational enterprise’s (MNEs) decision to set up tax haven subsidiaries. We adapt the Firm-specific advantage–Country-specific advantage (FSA–CSA) framework and construct a number of empirically testable hypotheses. The analysis is based on a database covering 14,209 MNEs in twelve OECD countries. We find that the variety of capitalism of a MNEs home location and the level of technological intensity has a strong impact on this decision. We also find that the home country corporate tax rate has a minimal impact. This suggests that corporate tax liberalisation is unlikely to deter MNEs from undertaking this activity.
Original languageEnglish
Pages (from-to)237-250
Number of pages14
JournalJournal of World Business
Issue number2
Early online date26 Sept 2015
Publication statusPublished - Feb 2016

Bibliographical note

© 2015 The Authors. Published by Elsevier Inc. This is an open access article under the CC BY-NC-ND license (


  • theory of FDI and the MNE
  • varieties of capitalism
  • tax havens
  • probit regression
  • corporate taxation


Dive into the research topics of 'The determinants of tax haven FDI'. Together they form a unique fingerprint.

Cite this