Analysing MNEs structure and activities using country-by-country reports. Evidence from the Italian dataset
24 Pages Posted: 30 Aug 2022
Date Written: August 29, 2022
Abstract
This paper is based on microdata originating in the first collection of country-by-country reporting (CbCR) – a new reporting tool to be filed by multinational enterprises (MNEs). It analyses the differences between CbCR and other widely used data sources of MNEs and presents the case of MNE activities in Italy. The CbCR dataset is used to understand the global distribution of MNE activities. Results show that foreign activities are mostly concentrated in high-income countries for all economic indicators. In low-income countries, MNEs activity appears to be concentrated in labour-intensive industries. Middle-income countries have a relatively higher importance in terms of tangible assets and employment opportunities than they do in terms of revenues and profits. Investment hubs have a relatively higher share in global MNEs profits than they do in global MNEs tangible assets and employment. The CbCR data can be useful for policymakers to obtain an indication on how a country is positioned in the global value chain (GVC) and its attractiveness for foreign companies.
Keywords: BEPS, corporate taxation, country-by-country reporting, GVC, multinational firms, offshoring
JEL Classification: F23, H25, H26, M16
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