Jinning Hong, Keith W. Glaister and Jane Frecknall-Hughes: The relative importance of tax incentives in the motives for and location of FDI: Evidence from UK MNEs 104-128

We analyse the role of tax incentives in the strategic motives for FDI and motives for the geographic location of the FDI for a sample of 192 MNEs. We also consider how the strategic motives for FDI and motives for location choice vary with the key characteristics of the sample (i.e., industry sector of FDI, geographical location of FDI and capital size of FDI). The highest ranked motives for FDI are concerned with business expansion, economic efficiency and technology transfer. The tax incentive motive is amongst the lowest ranked motives. The highest ranked host country location motives are concerned with market size, new market exploration and economic stability. A favourable tax regime does not feature as an important driving force for geographical location of FDI.