Venue: The ESRI, Whitaker Square, Sir John Rogerson's Quay, Dublin 2
Date: 28/06/2012
Time: 4 pm
Speaker: Professor Holger Görg, Christian-Albrechts-University Kiel, and the Kiel Institute for the World Economy. More information on Prof Görg.
The authors use unique exogenous corporate tax policy changes in the Republic of Ireland to investigate how corporate taxation affects foreign direct investment at the extensive and intensive margin. To this end the authors construct exhaustive sectoral and plant level panel data and use difference-in-differences strategies. The results indicate that the increase in corporate tax rates for exporters did not affect the entry or exit of foreign plants in Ireland, even though foreign firms use Ireland as an export platform. However, at the intensive margin there is evidence that foreign plants in Ireland reduce the size of their operations in response to the tax change.
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