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The Effects of Bilateral Tax Treaties on U.S. FDI Activity

  • Bruce A. Blonigen


  • Ronald B. Davies


The effects of bilateral tax treaties on FDI activity have been unexplored, despite significant ongoing activities by countries to negotiate and ratify these treaties. This paper estimates the impact of bilateral tax treaties using both U.S. inbound and outbound FDI over the period 1980--1999. Robust to a wide variety of alternative specifications, we find little evidence that bilateral tax treaties increase FDI activity, contrary to OECD-stated goals for such treaties.

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Article provided by Springer & International Institute of Public Finance in its journal International Tax and Public Finance.

Volume (Year): 11 (2004)
Issue (Month): 5 (09)
Pages: 601-622

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Handle: RePEc:kap:itaxpf:v:11:y:2004:i:5:p:601-622
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