Siregar, Muhammad Arvito and Nurdayadi, Nurdayadi and Salem, Sumini (2020) The Effect of Corporate income Tax Rate On foreign Direct investment: Empirical Evidence of ASEAN Countries From 1994 - 2018. Bachelor thesis, Swiss German University.

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Abstract

This study is conducted to understand and explore the relationship and significance of Corporate Income Tax (CIT) rates variation toward the level of FDI inflows of ASEAN countries from 1994 to 2018. In producing a more reliable result several control variables are used: Gross Domestic Product, Openness, Inflation and Unemployment. Under the estimation method of fixed effect model, the results of this research show that CIT rate has a negative and significant relationship while 3 of the control variables also have a significant relationship. Moreover, this study is also interested in filling the gap of the effectiveness of CIT rate reductions in attracting FDI into ASEAN. From the univariate level test, it is found that FDI increases significantly after the implementation of CIT rate reductions. Then it is concluded that CIT rate and GDP growth are the key determinants in affecting the decision in doing FDI by foreign investors. While inflation, openness and unemployment are not the key factors in affecting FDI. Furthermore, the use of CIT rate reductions are also effective in attracting FDI as the past reductions that have been made statistically impacted the FDI inflows to increase.

Item Type:	Thesis (Bachelor)
Uncontrolled Keywords:	Corporate Income Tax Rate; Foreign Direct Investment; ASEAN; Gross Domestic Product; CIT Rate Reduction
Subjects:	H Social Sciences > HF Commerce > HF5601 Accounting H Social Sciences > HG Finance H Social Sciences > HG Finance > HG4501-6051 Investment, capital formation, speculation H Social Sciences > HJ Public Finance > HJ2240 Revenue. Taxation. Internal revenue
Divisions:	Faculty of Business Administration and Communication > Department of Accounting
Depositing User:	Faisal Ifzaldi
Date Deposited:	02 Nov 2020 14:09
Last Modified:	02 Nov 2020 14:09
URI:	http://repository.sgu.ac.id/id/eprint/1933

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