draining development.pdf - Khazar University

228 Draining Development?the ability to construct more accurate estimates of TPM and its impactson both developed and developing countries. The Chinese governmentmay be the most well placed to move in this regard, and the rapidlygrowing number of empirical studies using data on Chinese trade transactionsand tax audits suggests we may soon have more reliable estimatesof TPM for at least one developing country.Notes1. Staff of the Joint Committee on Taxation, 2010, “Present Law and BackgroundRelated to Possible Income Shifting and Transfer Pricing,” Report JCX-37–10,submitted to the House Committee on Ways and Means, U.S. Congress, Washington,DC, July 20.2. See the decisions by Judge Learned Hand in Helvering v. Gregory, 69 F.2d 809(CA-2, 1934) and Commissioner v. Newman, 159 F.2d 848 (CA-2, 1947).ReferencesAzémar, C., and G. Corcos. 2009. “Multinational Firms’ Heterogeneity in Tax Responsiveness:The Role of Transfer Pricing.” World Economy 32 (9): 1291–318.Baker, R. W. 2005. Capitalism’s Achilles Heel: Dirty Money and How to Renew the Free-Market System. Hoboken, NJ: John Wiley & Sons.Bartelsman, E. J., and R. M. W. J. Beetsma. 2003. “Why Pay More? Corporate TaxAvoidance through Transfer Pricing in OECD Countries.” Journal of Public Economics87 (9–10): 2225–52.Bernard, A. B., J. B. Jensen, and P. K. Schott. 2008. “Transfer Pricing by U.S.-BasedMultinational Firms.” Discussion Paper 08–29 (September), Center for EconomicStudies, U.S. Bureau of the Census.Bernard, J.-T., and E. G. Genest-Laplante. 1996. “Transfer Pricing by the CanadianOil Industry: A Company Analysis.” Applied Economic Letters 3 (5): 333–40.Bernard, J.-T., and R. J. Weiner. 1990. “Multinational Corporations, Transfer Prices,and Taxes: Evidence from the U.S. Petroleum Industry.” In Taxation in theGlobal Economy, ed. A. Razin and J. Slemrod, 123–60. Chicago: University ofChicago Press.———. 1992. “Transfer Prices and the Excess Cost of Canadian Oil Imports: NewEvidence on Bertrand Versus Rugman.” Canadian Journal of Economics 25 (1):101–19.———. 1996. “Export Pricing in State-Owned and Private MNEs: Evidence from theInternational Petroleum Market.” International Journal of Industrial Organization14 (5): 647–68.Borkowski, S. C. 1992. “Organizational and International Factors Affecting MultinationalTransfer Pricing.” Advances in International Accounting 5 (1): 173–92.