01902cas a2200241 a 4500 AALejournalIMF014173 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475514094 1018-5941 BD-DhAAL BD-DhAAL Kinda, Tidiane. The Quest for Non-Resource-Based FDI : Do Taxes Matter? / Tidiane Kinda. Washington, D.C. : International Monetary Fund, 2014. 1 online resource (24 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Using manufacturing and services firm-level data for 30 sub-Saharan African (SSA) countries, this paper shows that taxation is not a significant driver for the location of foreign firms in SSA, while other investment climate factors, such as infrastructure, human capital, and insitutions, are. By analyzing disaggregate FDI data, the paper establishes that, while there is considerable contrast in behavior between vertical FDI (foreign firms producing for export) and horizontal FDI (foreign firms producing for local markets), taxation is not a key determinant for either type of FDI. Horizontal FDI is attracted to areas with higher trade regulations, highlighting interest in protected markets. Furthermore, horizontal FDI is affected more by financing and human capital constraints, and less by infrastructure and institutional constraints, than is vertical FDI. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2014/015 Full text available on IMF http://elibrary.imf.org/view/journals/001/2014/015/001.2014.issue-015-en.xml IMF e-Library