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Debate the Issues: Investment

image of Debate the Issues: Investment

Why do financial markets see so little risk, while companies that invest in the real economy appear to be much more prudent? How will we fund future pensions when interest on the products that finance them are so low? Where will the trillions of dollars needed to improve and extend infrastructures come from? How should international capital flows be regulated? These and other challenges are discussed in this collection of expert opinions on the social, economic and policy perspectives facing international investors, governments, businesses, and citizens worldwide.

English Also available in: Spanish, French

Do lower taxes encourage investment?

Conventional wisdom holds that countries with lower taxes attract higher levels of foreign direct investment (FDI). At first glance, this intuitive assumption seems to be supported by the evidence. Some tiny jurisdictions with low or no taxes on foreign investment do seem to attract more FDI than major economies, but investment is the wrong term for billions of dollars that flow in and out of these places as part of the strategies multinationals use to pay less tax.

English Also available in: French

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