Table 4 Evaluation of transfer pricing... | Emerald Publishing

Table 4

Evaluation of transfer pricing regulations and policies

Author	Methodology	Finding	Theoretical gap	Empirical gap	Problem
Davies et al. (2017)	Regression analysis	Exports to tax havens are 11% cheaper at intrafirm prices	Limited to a partial equilibrium framework and does not account for general equilibrium effects	Focuses on a single country (France) and a single year (1999)	Targeting enforcement against firms exporting to tax havens to reduce transfer pricing tax avoidance
Liu et al. (2017)	Regression analysis and difference-in-differences estimation	MNCs use tax-motivated transfer pricing in physical products to shift profits to lower-taxed locations			Examining how tax laws affect transfer pricing in different nations
Choi et al. (2020)	Theoretical Model	Tax-driven foreign direct investment may result in inefficient domestic production but benefit consumers, and increasing transfer pricing can marginally increase social welfare			Investigating the interaction between tax competitiveness and transfer pricing rules
Oats and Tuck (2019)	Discussing the advantages and restrictions of recent tax transparency requirements	Recent tax transparency requirements have advantages but need a precise definition of acceptable corporate tax evasion			Exploring the potential dysfunctional consequences of tax transparency

Author	Methodology	Finding	Theoretical gap	Empirical gap	Problem
Davies et al. (2017)	Regression analysis	Exports to tax havens are 11% cheaper at intrafirm prices	Limited to a partial equilibrium framework and does not account for general equilibrium effects	Focuses on a single country (France) and a single year (1999)	Targeting enforcement against firms exporting to tax havens to reduce transfer pricing tax avoidance
Liu et al. (2017)	Regression analysis and difference-in-differences estimation	MNCs use tax-motivated transfer pricing in physical products to shift profits to lower-taxed locations			Examining how tax laws affect transfer pricing in different nations
Choi et al. (2020)	Theoretical Model	Tax-driven foreign direct investment may result in inefficient domestic production but benefit consumers, and increasing transfer pricing can marginally increase social welfare			Investigating the interaction between tax competitiveness and transfer pricing rules
Oats and Tuck (2019)	Discussing the advantages and restrictions of recent tax transparency requirements	Recent tax transparency requirements have advantages but need a precise definition of acceptable corporate tax evasion			Exploring the potential dysfunctional consequences of tax transparency

Source(s): Table created by author