The Cost and Benefits of Tax Treaties with Investment Hubs: Findings from Sub-Saharan Africa

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Author/Editor: Sebastian Beer, Jan Loeprick
Release Date: © October, 2018
ISBN : 978-1-48438-164-9
Stock #: WPIEE2018227
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Description

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




More publications in this series: Working Papers


More publications by: Sebastian Beer ; Jan Loeprick