Tax Incentives and International Capital Flows: The Case of the United States and Japan

64 Pages Posted: 15 Feb 2006

See all articles by A. Lans Bovenberg

A. Lans Bovenberg

Tilburg University - Center for Economic Research (CentER); Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute)

Krister Andersson

affiliation not provided to SSRN

Kenji Aramaki

affiliation not provided to SSRN

Sheetal Chand

affiliation not provided to SSRN

Date Written: January 17, 1989

Abstract

This paper explores how the tax treatment of investment and savings affects international capital flows as well as national and global welfare. Focusing on portfolio investment, it evaluates the international effects of capital income taxes in the United States and Japan. During the 1980s, these taxes encouraged capital flows to the United States both by favoring investment in that country and by harming the country`s relative savings performance. The paper concludes that the internationalization of financial markets calls for a careful study of the international implications of domestic tax policies.

JEL Classification: 0230, 3200, 3230

Suggested Citation

Bovenberg, A. Lans and Andersson, Krister and Aramaki, Kenji and Chand, Sheetal, Tax Incentives and International Capital Flows: The Case of the United States and Japan (January 17, 1989). IMF Working Paper No. 89/5, Available at SSRN: https://ssrn.com/abstract=884534

A. Lans Bovenberg (Contact Author)

Tilburg University - Center for Economic Research (CentER) ( email )

P.O. Box 90153
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Centre for Economic Policy Research (CEPR)

London
United Kingdom

CESifo (Center for Economic Studies and Ifo Institute)

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Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

Krister Andersson

affiliation not provided to SSRN

No Address Available

Kenji Aramaki

affiliation not provided to SSRN

No Address Available

Sheetal Chand

affiliation not provided to SSRN

No Address Available

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