Abstract
AbstractThis chapter provides some evidence on the effect of bilateral tax treaties on foreign direct investment (FDI) activity. Using Organization for Economic Cooperation and Development's (OECD) data, it shows that new treaty activity (during the 1983–1992 period) suggests strong negative impacts on FDI. Despite the positive correlation in the case of much older treaties, this evidence cannot be weighed heavily since FDI activity before these treaties were in place cannot be observed. The results are consistent with previous work by Blonigen and Davies (2001) using only U.S. data. Thus, in conjunction with this earlier work, the results cast doubt upon the FDI promotion rationale for treaty formation, which stands in contrast to the conventional wisdom among many economists and lawyers.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
