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Double Taxation Treaties as a Factor of Cross-border Investment Activity
[Соглашения Об Избежании Двойного Налогообложения Как Фактор Трансграничной Инвестиционной Активности]

Author

Listed:
  • Lobanov, Mikhail (Лобанов, Михаил)

    (Institute of Economics, Russian Academy of Sciences)

  • Zvezdanovic-Lobanova, Elena (Звездович-Лобанова, Елена)

    (Institute of social sciences, Belgrade)

Abstract

The article deals with the main purposes of conclusion of bilateral double taxation treaties (DTTs) and possible consequences of their application, in particular, the effects on the investment potential and budget system balance in the exporters and importers of the capital. Given paper considers the specifics of Russian DTTs structure and the degree of its correspondence to the model conventions, as well as peculiarities of evolution of international treaties with various groups of countries in 1980-2010s. The authors predict spatial development of the DTTs system in Russia, which could be characterized by at least four stages since the early 1990s, and focus on the ways of risks minimization following new agreements conclusion. Particular attention is paid to the problem of the influence of effective treaties on the dynamics of investment inflow and outflow; it is noted that the results of relevant studies do not give a clear answer to the question about the nature of the dependence of cross-border capital flows and DTTs application.

Suggested Citation

  • Lobanov, Mikhail (Лобанов, Михаил) & Zvezdanovic-Lobanova, Elena (Звездович-Лобанова, Елена), 2015. "Double Taxation Treaties as a Factor of Cross-border Investment Activity [Соглашения Об Избежании Двойного Налогообложения Как Фактор Трансграничной Инвестиционной Активности]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 92-111, February.
    • Handle: RePEc:rnp:ecopol:e15110
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    References listed on IDEAS

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    1. Davies, Ronald B., 2003. "Tax Treaties, Renegotiations, and Foreign Direct Investment," Economic Analysis and Policy, Elsevier, vol. 33(2), pages 251-273, September.
    2. Peter Egger & Mario Larch & Michael Pfaffermayr & Hannes Winner, 2006. "The impact of endogenous tax treaties on foreign direct investment: theory and evidence," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 39(3), pages 901-931, August.
    3. Ronald B. Davies & Pehr‐Johan Norbäck & Ayça Tekin‐Koru, 2009. "The Effect of Tax Treaties on Multinational Firms: New Evidence from Microdata," The World Economy, Wiley Blackwell, vol. 32(1), pages 77-110, January.
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    5. Bruce A. Blonigen & Ronald B. Davies, 2004. "The Effects of Bilateral Tax Treaties on U.S. FDI Activity," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 11(5), pages 601-622, September.
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    7. Fabian Barthel & Matthias Busse & Eric Neumayer, 2010. "The Impact Of Double Taxation Treaties On Foreign Direct Investment: Evidence From Large Dyadic Panel Data," Contemporary Economic Policy, Western Economic Association International, vol. 28(3), pages 366-377, July.
    8. Eric Neumayer, 2007. "Do double taxation treaties increase foreign direct investment to developing countries?," Journal of Development Studies, Taylor & Francis Journals, vol. 43(8), pages 1501-1519.
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