Critical issues in taxation and development

Many developing countries find it difficult to raise the revenue required to provide such basic public services as education, health care, and infrastructure. Complicating the policy challenges of taxation in developing countries are issues that most developed countries do not face, including widespread corruption, tax evasion and tax avoidance, and ineffective political structures. In this volume, experts investigate crucial challenges confronted by developing countries in raising revenue.

After a comprehensive and insightful overview, each chapter uses modern empirical methods to study a single critical issue essential to understanding the effects of taxes on development. Topics addressed include the effect of taxation on foreign direct investment; forms of corruption, tax evasion, and tax avoidance that are specific to developing countries; and issues related to political structure, including the negative effects of fiscal decentralization on the effectiveness of developmental aid and the relationship between democracy and taxation in Asian, Latin American, and European Union countries that have recently experienced both political and economic transitions.

Contributors
Clemens Fuest, Timothy Goodspeed, Shafik Hebous, Michael Keen, Christian Lessmann, Boryana Madzharova, Giorgia Maffini, Gunther Markwardt, Jorge Martinez-Vazquez, Paola Profeta, Riccardo Puglisi, Nadine Riedel, Simona Scabrosetti, Johannes Stroebel, Mirco Tonin, Arthur van Benthem, Li Zhang, George Zodrow

Clemens Fuest and George R. ZodrowMichael KeenTimothy Goodspeed and Jorge Martinez-Vazquez and Li ZhangClemens Fuest and Giorgia Maffini and Nadine RiedelJohannes Stroebel and Arthur van BenthemBoryana MadzharovaClemens Fuest and Shafik Hebous and Nadine RiedelMirco ToninChristian Lessmann and Gunther MarkwardtPaola Profeta and Riccardo Puglisi and Simona Scabrosetti

Series Foreword	p. vii
I
1 Introduction	p. 3
2 Taxation and Development-Again	p. 13
II
3 Do Companies View Bribes as a Tax? Evidence on the Tradeoff between Corporate Taxes and Corruption in the Location of FDI	p. 45
4 Do Corruption and Taxation Affect Corporate Investment in Developing Countries?	p. 65
5 Investment Treaties and Hydrocarbon Taxation in Developing Countries	p. 83
III
6 The Effect of a Low Corporate Tax Rate on Payroll Tax Evasion	p. 109
7 International Profit Shifting and Multinational Firms in Developing Countries	p. 145
8 Too Low to Be True: The Use of Minimum Thresholds to Fight Tax Evasion	p. 167
IV
9 Fiscal Federalism and Foreign Transfers: Does Interjurisdictional Competition Increase the Effectiveness of Foreign Aid?	p. 189
10 Taxation and Democracy in Developing Countries	p. 217
List of Contributors	p. 239
Index	p. 241

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