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Foreign Direct Investment and Development in Developing Host Economies

In: The Palgrave Handbook of Corporate Social Responsibility

Author

Listed:
  • Hema Soondram

    (University of Mauritius)

  • Martin Samy

    (Universite Des Mascareignes)

  • Bhavish Jugurnath

    (University of Mauritius)

Abstract

Double tax treaties (DTTs) are highly controversial in Africa. At the time of signing the treaties, African economies’ main objective was to promote FDI in their nations. However, there is inconclusive evidence to date on the positive impact of DTTs on FDI in the host developing economies. Many countries’ leaders are questioning the rationale for signing tax treaties. In fact, DTTs are these days being branded as contributing to poverty by depriving the African countries from fiscal revenue. Are DTTs therefore a boon or a curse to developing economies? Amid these controversial claims, this paper is a review of existing literature on the impact of tax treaties on developing host countries, focusing specifically on the African continent. Additionally, the authors argue that there is a significant empirical need to understand the relationship between DTTs, FDI, and the social welfare development of the host African economies. This paper reviews a plethora of research evidence to identify the relationships of FDI and questions the practical implications to developing countries.

Suggested Citation

  • Hema Soondram & Martin Samy & Bhavish Jugurnath, 2021. "Foreign Direct Investment and Development in Developing Host Economies," Springer Books, in: David Crowther & Shahla Seifi (ed.), The Palgrave Handbook of Corporate Social Responsibility, pages 615-635, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-42465-7_7
    DOI: 10.1007/978-3-030-42465-7_7
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