Download This PaperThe Cost and Benefits of Tax Treaties with Investment Hubs: Findings from Sub-Saharan Africa
38 Pages Posted: 26 Oct 2018 Last revised: 27 Oct 2018
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The Cost and Benefits of Tax Treaties with Investment Hubs: Findings from Sub-Saharan Africa
World Bank Policy Research Working Paper No. 8623
Number of pages: 38
Posted: 26 Oct 2018
Last Revised: 30 Oct 2018
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The Cost and Benefits of Tax Treaties with Investment Hubs: Findings from Sub-Saharan Africa
IMF Working Paper No. 18/227
Number of pages: 39
Posted: 15 Nov 2018
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46
Date Written: October 25, 2018
Abstract
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.
Suggested Citation: Suggested Citation
Beer, Sebastian and Loeprick, Jan, The Cost and Benefits of Tax Treaties with Investment Hubs: Findings from Sub-Saharan Africa (October 25, 2018). World Bank Policy Research Working Paper No. 8623, Available at SSRN: https://ssrn.com/abstract=3273176
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