Petkova, Kunka, Stasio, Andrzej, Zagler, Martin. 2020. On the relevance of double tax treaties. International Tax and Public Finance.
BibTeX
Abstract
This paper investigates the effects of double tax treaties (DTTs) on foreign direct investment (FDI) after controlling for their relevance in the presence of treaty shopping. DTTs cannot be considered a bilateral issue, but must be viewed as a network. We define tax distance as the cost of channelling corporate income from one country to another and, by considering treaty shopping through intermediate jurisdictions, we calculate the shortest (i.e. the cheapest) distance between any two countries. We show that relevant tax treaties—which reduce the direct tax distance both over domestic law and the entire existing treaty network—will increase FDI by about 18%.
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Status of publication | Published |
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Affiliation | WU |
Type of publication | Journal article |
Journal | International Tax and Public Finance |
Citation Index | SSCI |
WU Journalrating 2009 | A |
WU-Journal-Rating new | FIN-A, INF-A, STRAT-B, VW-D, WH-B |
Language | English |
Title | On the relevance of double tax treaties |
Year | 2020 |
Reviewed? | Y |
URL | https://link.springer.com/article/10.1007/s10797-019-09570-9 |
DOI | https://doi.org/10.1007/s10797-019-09570-9 |
Open Access | Y |
Open Access Link | https://link.springer.com/article/10.1007/s10797-019-09570-9 |
JEL | F21 F23; F53; H25; H26; H73; H87; K34 |
Associations
- People
- Petkova, Kunka (Former researcher)
- Stasio, Andrzej (Former researcher)
- Zagler, Martin (Details)
- Organization
- Research Institute for International Taxation FI (Details)
- Department of Economics (Crespo Cuaresma) (Details)
- Research areas (ÖSTAT Classification 'Statistik Austria')
- 5311 Public finance (Details)
- 5341 Economic policy (Details)
- 5343 Economic theory (Details)