Does Tax Drive the Headquarters Locations of the World's Biggest Companies?

40 Pages Posted: 26 Aug 2018

See all articles by Kimberly A. Clausing

Kimberly A. Clausing

Reed College - Department of Economics

Date Written: August 14, 2018

Abstract

In recent years, policy makers have given paramount attention to “competitiveness”, working to ensure that domestic economies attract investment, jobs, and tax revenue. Toward this end, countries have steadily lowered corporate tax rates in an attempt to attract mobile international businesses. This paper discusses the desirability this policy stance in light of data on the world’s biggest companies. Using Forbes lists of the “Global 2000” top companies over the period 2003-2017, the paper analyzes companies’ headquarters locations, focusing on economic, geographic, and policy determinants. The paper then relates these findings to larger policy questions.

Keywords: multinational companies, corporate headquarters, international tax, corporate tax

JEL Classification: F23, H25

Suggested Citation

Clausing, Kimberly A., Does Tax Drive the Headquarters Locations of the World's Biggest Companies? (August 14, 2018). Available at SSRN: https://ssrn.com/abstract=3232887 or http://dx.doi.org/10.2139/ssrn.3232887

Kimberly A. Clausing (Contact Author)

Reed College - Department of Economics ( email )

3203 SE Woodstock Boulevard
Portland, OR 97202-8199
United States
503-517-7388 (Phone)
503-777-7776 (Fax)

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