The Impact Of Double Taxation Treaties On Foreign Direct Investment: Evidence From Large Dyadic Panel Data
Abstract"To increase inward foreign direct investment (FDI), policy makers increasingly resort to the ratification of double taxation treaties (DTTs). However, the effectiveness of DTTs in inducing higher FDI is still open to debate, as the empirical evidence of existing studies is anything but conclusive. In contrast to earlier approaches, we use a largely unpublished dataset on bilateral FDI stocks, covering a much larger and more representative sample of host and source countries. Controlling for standard determinants of FDI and employing various econometric specifications, our results indicate that DTTs do lead to higher FDI stocks and that the effects are substantively important as well." Copyright (c) 2009 Western Economic Association International.
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Bibliographic InfoArticle provided by Western Economic Association International in its journal Contemporary Economic Policy.
Volume (Year): 28 (2010)
Issue (Month): 3 (07)
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- Francis Weyzig, 2013. "Tax treaty shopping: structural determinants of Foreign Direct Investment routed through the Netherlands," International Tax and Public Finance, Springer, vol. 20(6), pages 910-937, December.
- Fabrizio Barca & Philip McCann & Andrés Rodríguez‐Pose, 2012.
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- Fabrizio Barca & Philip McCann & Andrés Rodríguez-Pose, 2011. "The case for regional development intervention: Place-based versus place-neutral approaches," Working Papers 2011-15, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
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