The Cost and Benefits of Tax Treaties with Investment Hubs

• Tác giả: Sebastian Beer
• Ngôn ngữ: eng
• Ký hiệu phân loại: 330 Economics
• Thông tin xuất bản: World Bank, Washington, DC, 2018
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 296620
• Chủ đề: 1. DOUBLE TAX TREATY; 2. INVESTMENT PROMOTION; 3. MULTINATIONAL CORPORATIONS; 4. TAX REVENUE; 5. TAX TREATY

Tóm tắt

 This paper investigates the costs and benefits of concluding double tax treaties with investment hubs. Based on a sample of 41 African economies from 1985-2015, the results suggest that signing treaties with investment hubs is not associated with additional investments
  yet, these treaties tend to come with nonnegligible revenue losses. Building on a theoretical model, the paper investigates the role of treaty shopping in driving nominal investment flows and provides indirect evidence for its importance in the sample.