Feld, Lars P.; Köhler, Ekkehard A.; Palhuca, Leonardo; … - 2021
with less foreign direct investment (FDI). With an improved dataset on tax autonomy of sub-federal government tiers, we … present evidence that fiscal decentralization (de facto) does not reduce FDI. If local governments can set their tax rates and … bases independently, they attract more FDI. Analyzing 83,458 corporate cross-border acquisitions (CBA), between 148 source …