SEEU Review vol. 6 Nr. 2 (pdf) - South East European University

Haderi S., Prof. Dr.; Kola T., Prof. Asocc. Dr.; Liko E., Dr.The main findings of empirical work are that statutory corporate tax ratehas negative impact in FDI inflow, consistent with economic theory. Marketsize measured by GDP per capita has positive and highly significant impacton FDI, which states that the purpose of FDI has also been serving localmarket. The EBRD index on infrastructure and openness of domestic marketforeign trade has both positive impacts in attracting foreign investment.The average nominal wage has negative impact on FDI flows. This is inaccordance with economic theory which suggests that the type of FDI madein transition economies are directed by cheap labor costs that exist in thesecountries.ReferencesBazo E. Andres (2008). Tax Incentives Offered by Developing Countries:Attracting Foreign Investment or Creating Disaster. Tax NotesInternational, Vol. 52. No. 4Bénassy –Quéré, Agnés; Lionel Fontagné and Amina Lahréche –Révil(2003). Tax Competition and Foreign Direct Investment. CEPII WorkingPaper No. 17Bevan, A. Alan and Saul Estrin (2000). The Determinants of Foreign DirectInvestment in Transition Economies. William Davidson Institute WorkingPaper No. 342Boadway, Robin and Anwar Shah (1992). How Tax Incentives AffectDecisions to Invest in Developing Countries. The World Bank WorkingPaper SeriesBotric, Valerija and Lorena Śkufić (2006). Main Determinants of ForeignDirect Investment in the South East European Countries. TransitionStudies Review, pp 359-377Brochner, Jean; Jesper Jensen; Patrik Swensson and Peter Birch Sorensen(2006). The Dilemmas of Tax Coordination in the Enlarged EuropeanUnion. Institute for Federalism and Intergovernmental Relation, WorkingPaper Series No.11Buettner, Thiess (2002). The Impact of Taxes and Public Spending on theLocation of FDI: Evidence from FDI –Flows within Europe. ZEWDiscussion Paper No. 17Devereux, P. Michael (2003). Measuring Taxes on Income from Capital. TheInstitute for Fiscal Studies Working Paper No. 04148