The Cost and Benefits of Tax Treaties with Investment Hubs: Findings from Sub-Saharan Africa
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Summary:
This paper investigates the costs and benefits of concluding double tax treaties with investment hubs. Based on a sample of 41 African economies from 1985–2015, the results suggest that signing treaties with investment hubs is not associated with additional investments; yet, these treaties tend to come with nonnegligible revenue losses. Building on a theoretical model, the paper investigates the role of treaty shopping in driving nominal investment flows and provides indirect evidence for its importance in the sample
Series:
Working Paper No. 2018/227
Subject:
Balance of payments Corporate income tax Double taxation Foreign direct investment Revenue administration Taxes Withholding tax
English
Publication Date:
October 24, 2018
ISBN/ISSN:
9781484378007/1018-5941
Stock No:
WPIEA2018227
Pages:
38
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