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Do Bilateral Tax Treaties Promote Foreign Direct Investment?Bruce A. BlonigenUniversity of Oregon - Department of Economics; National Bureau of Economic Research (NBER) Ronald B. DaviesUniversity of Oregon - Department of Economics June 1, 2001 University of Oregon Economics Working Paper No. 2001-12 Abstract: We explore the impact of bilateral tax treaties on foreign direct investment using data from OECD countries over the period 1982-1992. We find that recent treaty formation does not promote new investment, contrary to the common expectation. For certain specifications we find that treaty formation may actually reduce investment as predicted by arguments suggesting treaties are intended to reduce tax evasion rather than promote foreign investment.
Number of Pages in PDF File: 30 working papers seriesDate posted: September 30, 2003Suggested CitationContact Information
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