An Fdi-Driven Approach to Measuring the Scale and Economic Impact of BEPS

Bolwijn, R., Casella, B., and Rigo, D. (2018). An FDI-driven approach to measuring the scale and economic impact of BEPS. Transnational Corporations, 25(2):107–143.

38 Pages Posted: 22 Jul 2019

See all articles by Richard Bolwijn

Richard Bolwijn

United Nations - Conference on Trade and Development (UNCTAD)

Bruno Casella

United Nations - Conference on Trade and Development (UNCTAD)

Davide Rigo

Graduate Institute, Geneva (IHEID), Students

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Date Written: September 14, 2018

Abstract

This paper explores the link between foreign direct investment (FDI) and the BEPS (base erosion and profit shifting) practices of multinationals (MNEs). It puts the spotlight on the outsize role of offshore investment hubs as major players in global corporate investment, a role that is largely due to MNEs’ tax planning, although other factors contribute. The paper shows that tax avoidance practices enabled by FDI through offshore hubs are responsible for significant leakage of development financing resources. In policy terms, these findings call for enhanced cooperation and synergies between international tax and investment policymaking.

Keywords: multinational enterprise, BEPS, revenue losses, developing countries, offshore investment

JEL Classification: F21, F23, M21

Suggested Citation

Bolwijn, Richard and Casella, Bruno and Rigo, Davide, An Fdi-Driven Approach to Measuring the Scale and Economic Impact of BEPS (September 14, 2018). Bolwijn, R., Casella, B., and Rigo, D. (2018). An FDI-driven approach to measuring the scale and economic impact of BEPS. Transnational Corporations, 25(2):107–143., Available at SSRN: https://ssrn.com/abstract=3422774

Richard Bolwijn

United Nations - Conference on Trade and Development (UNCTAD) ( email )

Palais des Nations
Office E 8074
Geneva, 1211
Switzerland

Bruno Casella (Contact Author)

United Nations - Conference on Trade and Development (UNCTAD) ( email )

Palais des Nations
Office E 8074
Geneva, 1211
Switzerland

Davide Rigo

Graduate Institute, Geneva (IHEID), Students ( email )

Switzerland

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