Working Paper: NBER ID: w8834
Authors: Bruce A. Blonigen; Ronald B. Davies
Abstract: We explore the impact of bilateral tax treaties on foreign direct investment using data from OECD countries over the period 1982-1992. We find that recent treaty formation does not promote new investment, contrary to the common expectation. For certain specifications we find that treaty formation may actually reduce investment as predicted by arguments suggesting treaties are intended to reduce tax evasion rather than promote foreign investment.
Keywords: No keywords provided
JEL Codes: F21; F23; H25
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Bilateral tax treaties (F38) | Foreign direct investment (FDI) (F21) |
| Bilateral tax treaties (F38) | Tax evasion strategies (H26) |
| Tax evasion strategies (H26) | Foreign direct investment (FDI) (F21) |
| Bilateral tax treaties (F38) | FDI stocks (F21) |