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The CEPII Newsletter       
February 2019        



The French edition is slightly different as it also includes material available in French only  

Europe Monnaie & Finance Trade & Globalization Migrations Economic Policy Emerging Economies Competitivness & Growth Environment & Natural Ressources
  Focus

Apple Tax Avoidance Strategy in Ireland

Using public macro-level data on activities of multinationals, Sébastien Laffitte & Farid Toubal document in their Working Paper "A Fistful of Dollars? Foreign Sales Platforms and Profit Shifting in Tax Havens" that U.S. firms register sales in low tax jurisdictions and not where these physically take place. The case of Apple is a very good example of how multinational firms organize their affiliates worldwide to avoid paying taxes. This article shows that the country market size and traditional determinants of foreign platforms have hard time to explain the Apple cases. The host country tax environment matters in particular its tax haven status. The authors characterize tax haven and shed light on the attractiveness of Carribean tax havens for service activities and big tax havens for manufacturing activities. The quantification shows that profit shifting by foreign sales platforms in tax havens amounts to about $80bn in 2013. Their findings contribute to the recent policy debate on the reform of international taxation. >>>
  Edito




Are global value chains receding? The jury is still out.
Key findings from the analysis of deflated world trade in parts and components


In this article, we examine the dynamics of Global Value Chains (GVCs) since the 2000s. Did it show a marked expansion up to the Great Recession and did GVCs begin a downturn in the 2010s? To better understand the evolution of GVCs at the world level, we use very detailed trade data for 2000 to 2016, which distinguishes different production stages along the GVC. This new GVC indicator shows moderate growth over the study period with no trend reversal. In the electronics sector, where GVCs are particularly well-developed, we observe contrasting effects: the share in P&C trade for office machinery and computers has decreased, while it has increased in the case of telecommunications equipment, the flagship IT revolution industry.
Guillaume Gaulier, Aude Sztulman & Deniz Ünal

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ISSN: 1255-7072
Editorial Director : Sébastien Jean
Managing Editor : Dominique Pianelli