Graduation Year


Document Type




Degree Granting Department


Major Professor

Chris Pantzalis, Ph.D.

Co-Major Professor

Mohamad Ali Hasbini, Ph.D.

Committee Member

Dahlia Robinson, Ph.D.

Committee Member

Robert Hammond, D.B.A

Committee Member

Janene Culumber, D.B.A


Corporate Taxation, Cross-Border Transactions, Fiscal Policy, International Taxation


Foreign direct investment (FDI) is an increasingly significant element of today’s global economy. Since the 1980s, global FDI flows have experienced impressive increments up until 2007. FDI flows decreased significantly during the years following the global financial crisis of 2008 and have not yet returned to pre-crisis levels. Since the 2008 global financial crisis, significant changes have occurred in the regulatory and international investment environments while complexity of national tax systems had steadily increased during the past century. This study analyzes the effect of national tax complexity on FDI before and after the 2008 global financial crisis. The Heckman selection model is used to analyze tax complexity effects over the existence of bilateral FDI relationships. The gravity model of trade is used to analyze factors determining bilateral FDI flows between a pair of source and host countries. This study provides new evidence about the relationship between tax complexity and bilateral FDI flows before and after the global financial crisis of 2008. Empirical results from this research show a negative relationship between complexity levels of national tax systems and levels of FDI flows developed after the 2008 financial crisis. Additionally, this research shows a negative relation between national tax complexity and the existence of bilateral FDI flows continued after the 2008 financial crisis. These findings have important implications for national policy makers, regulators, investors and executives from Multinational Corporations.

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