The Tax Sensitivity of Foreign Direct Investment: Evidence from Firm-Level Panel Data

Understanding the determinants of foreign direct investment (FDI) is important for analyzing capital flows and the industrial organization of multinational firms. Most empirical studies of FDI, however, have focused on case studies of nontax factors in overseas investment decisions or on discerning reduced-form relationships between some measure of FDI and variables relating to nontax and tax aspects of the investment decision. In this paper, we examine the effects of taxation on FDI using previously unexplored (for this purpose) panel data on FDI by subsidiaries of U.S. multinational firms collected by Compustat's geographic segment file project. These firm- level data contain information on new capital investment overseas which enable us to measure tax influences on FDI more precisely and allow us to focus on structural models of subsidiaries' investment decision. Our empirical results cast significant doubt on the simplest notion that 'taxes don't matter' for U.S. firms' FDI decisions. Tax parameters influence FDI in precisely the way indicated by neoclassical models. Our results also lend support to the application of the 'tax capitalization' model to the study of dividend repatriation and foreign direct investment decisions.

Feed intake pattern, behaviour, rumen characteristics and blood metabolites of finishing beef steers offered total mixed rations constituted at feeding or ensiling

peer-reviewedTwo experiments were undertaken. In Experiment 1, behaviour, intake pattern and blood metabolites, were recorded for steers offered total mixed rations (TMR) based on grass silage and concentrates, and constituted either at ensiling (E-TMR) or feedout (F-TMR). Fourteen continental crossbred steers (mean starting weight 505 (s.d. 41.5) kg) were assigned to each of the following eight treatments: grass silage offered ad libitum (SO), E-TMR diets constituted in approximate dry matter (DM) ratios of grass:concentrates of 75:25 (EL), 50:50 (EM) and 25:75 (EH), F-TMR diets constituted in approximate DM ratios of grass silage:concentrates of 75:25 (FL), 50:50 (FM) and 25:75 (FH), and finally concentrates ad libitum (AL). Total DM intake increased linearly (P < 0.001) and the time spent eating and ruminating decreased linearly (P < 0.001) with increasing concentrate proportion. Animals on the F-TMR diets had higher total DM intakes (P < 0.05) and plasma glucose (P < 0.05) and urea (P < 0.001) concentrations than animals on the corresponding E-TMR diets. No effect of method of feed preparation on intake pattern or behaviour was recorded. In Experiment 2, four ruminally cannulated Holstein-Friesian steers of mean initial live weight 630 (s.d. 23.2) kg were used to evaluate rumen characteristics for four of the above diets (FL, EL, FH and EH) in a 4 × 4 latin square design. Higher concentrate diets resulted in lower rumen pH (P < 0.05), higher lactic acid (P < 0.001) and ammonia (P < 0.05) concentrations and lower acetate:propionate (P < 0.05). F-TMR was associated with a higher (P < 0.05) rumen volatile fatty acid concentration but no difference in other rumen fermentation characteristics compared to E-TMR. Concentrate proportion and method of feed preparation had no effect (P > 0.05) on rumen pool sizes but animals consuming the high concentrate diet had a faster (P < 0.05) rumen passage rate of NDF than animals on the low concentrate diet.B. Cummins was in receipt of a Teagasc Walsh Fellowship

Conservation characteristics of grass and dry sugar beet pulp co-ensiled after different degrees of mixing

peer-reviewedThe objective of this experiment was to quantify the effects of the degree of mixing of dry molassed sugar beet pulp (BP) with grass on silage conservation characteristics. Herbage from a timothy (Phleum pratense) sward was precision chopped and treated with a formic acid based additive (3 l/t grass). Units of 50 kg grass, without or with 2.5kg BP were randomly allocated among four replicates on each of seven treatments. The treatments were (1) no BP (NONE), (2) BP evenly mixed through the grass (EVEN), (3) BP evenly mixed through the lower 25 kg grass (LOWH), (4) BP evenly mixed through the lower 12.5 kg grass (LOWQ), (5) 0.625 kg BP mixed through the top 25 kg grass and 1.875 kg SBP mixed through the lower 25 kg grass (25/75), (6) BP placed in 0.5 kg layers beneath each 10 kg grass (LAYR), and (7) BP placed in a single layer under all of the grass (BOTM). Laboratory silos were filled and sealed, and stored at 15 °C for 163 days. Effluent was collected and weighed from each silo throughout the ensilage period. At opening, silage composition and aerobic stability measurements were made. Total outflow of effluent was reduced (P<0.001) by the addition of BP; LAYR had a greater effect (P<0.001) than any of the other treatments. Effluent dry matter (DM) concentration was highest (P<0.05) for BOTM and lowest (P<0.01) for NONE. All treatments underwent similar lactic-acid dominant fermentations. Incorporation of BP with grass increased silage DM concentration (P<0.001), in vitro DM digestibility (P<0.05) and water soluble carbohydrate (P<0.001) concentration and reduced acid detergent fibre (P<0.001) concentration. Aerobic stability was similar across treatments and aerobic deterioration at 192 h was higher (P<0.05) for LOWQ, 25/75, LAYR and BOTM than for NONE. In conclusion, the incorporation of BP increased silage DM digestibility but had relatively little effect on fermentation or aerobic stability. Placing BP in layers gave the largest and most sustained restriction in effluent output.B. Cummins acknowledges receipt of a Walsh Fellowship provided by Teagasc

Effects of breed type, silage harvest date and pattern of offering concentrates on intake, performance and carcass traits of finishing steers

peer-reviewedThe objective of this experiment was to investigate the effects and interactions of breed type, silage harvest date and pattern of offering concentrates on intake, performance and carcass traits of finishing steers. Seventy-two steers (36 Friesian and 36 beef cross) were blocked on weight within breed type and assigned to a pre-experimental slaughter group or to one of 4 dietary treatments in a 2 (breed type) 2 (early- or late- cut silage) 2 (flat rate or varied pattern of offering concentrates) factorial arrangement of treatments. The flat-rate feeding pattern was silage ad libitum plus 5 kg concentrates per head daily to slaughter. The varied feeding pattern was silage only for 79 days followed by concentrates ad libitum to slaughter. All animals were slaughtered together after 164 days when the groups on the two feeding patterns had consumed the same total quantity of concentrates. Friesians had a higher (P < 0.001) silage dry matter (DM) intake and a higher (P < 0.01) total DM intake than the beef crosses. Live-weight gain was similar for both breed types but the beef-cross animals had a higher (P < 0.001) kill-out proportion, higher (P < 0.01) carcass gain, and better (P < 0.001) carcass conformation than the Friesians. The beef-cross type also had a higher (P < 0.001) proportion of muscle and a lower (P < 0.001) proportion of bone in the carcass. Silage harvest date had no effect on silage or total DM intakes but the early-cut silage did result in higher (P < 0.01) carcass gain. Animals on the varied feeding pattern consumed less (P < 0.01) silage DM and less (P < 0.001) total DM than those on the flat rate feeding pattern. Live-weight gain and carcass gain were similar for the two feeding patterns. It is concluded that Friesians had a higher intake, but had lower carcass gain than the beef-cross type. Animals on the early-cut silage had higher carcass gain than those on the late-cut silage. The varied feeding pattern resulted in lower DM intake but efficiency of feed energy utilisation was similar for both feeding patterns. Interactions were generally not statistically significant

Spiders in Paint Creek, a local wetland: Initial findings in family composition and distribution

The presence of spiders in terrestrial ecosystems has been studied extensively. Little is known, however, about the role of spiders in aquatic ecosystems, especially wetlands. The purpose of this study was to obtain a preliminary understanding of the spider community found in a local wetland, Paint Creek. Aerial and ground samples were collected along a 50-meter transect in a dense stand of native Typha angustifolia. Samples were taken monthly from May to September, and were analyzed for both species composition and plant biomass. Initial findings indicate that spider communities in wetlands are highly variable. Ground samples yielded the largest number of individuals, high plant biomass yielded high species composition, and all variables changed with season. Overall, the family Lycosidae exhibited the highest abundance, followed by Clubionidae. Unexpectedly, the family Tetragnathidae exhibited the least number of individuals collected over the five month period. Continued sampling is needed to further understand the complex dynamics of spider communities in wetland habitats

The germination of corn and wheat as affected by various fertilizer salts at different soil temperatures

The purpose of this investigation was: (1) to determine the effect of various concentrations of certain fertilizers in the soil on the germination of corn and wheat, and (2) to determine the effect of soil temperature on the rates of fertilizer that can be applied without reducing germination

Arbitrary precision composite pulses for NMR quantum computing

We discuss the implementation of arbitrary precision composite pulses developed using the methods of Brown et al. [Phys. Rev. A 70 (2004) 052318]. We give explicit results for pulse sequences designed to tackle both the simple case of pulse length errors and for the more complex case of off-resonance errors. The results are developed in the context of NMR quantum computation, but could be applied more widely.Comment: 16 pages elsart, no figures. In press at Journal of Magnetic resonanc