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We provide evidence on how changes in the use of high‐skilled workers (inventors) in a foreign location affect a firm's domestic use of the same type of worker. We exploit rich data that provide variation in the location of inventors within multinational firms across industries and countries to control for confounding firm–time and industry factors. We find that a 10% increase in the use of foreign...
This paper looks at corporate income taxes in developing countries from both an empirical and a theoretical perspective. Many economic principles about corporate income taxes apply equally in advanced and developing economies, but some characteristics of developing economies lead to different trade‐offs. These include fewer locational rents and generally lower administrative capacity. Empirically,...
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