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Impact des conventions fiscales endogènes sur l'investissement direct à l'étranger: théorie et résultats .
Author(s) -
Egger Peter,
Larch Mario,
Pfaffermayr Michael,
Winner Hannes
Publication year - 2006
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/j.1540-5982.2006.00375.x
Subject(s) - foreign direct investment , multinational corporation , international economics , welfare , economics , endowment , withholding tax , treaty , tax treaty , international trade , double taxation , general equilibrium theory , monetary economics , ad valorem tax , public economics , direct tax , macroeconomics , market economy , law , finance , political science
This paper investigates the effect of tax treaties on bilateral stocks of outward FDI. For this purpose we employ a numerically solvable general equilibrium model of trade and multinational firms to study the impact of tax treaties on both welfare and outward FDI. The model indicates under which factor endowment configurations countries gain in welfare when implementing a tax treaty. This motivates an empirical specification of the endogenous selection into implementing new tax treaties. Using data of bilateral OECD outward FDI between 1985 and 2000, we find a significant negative impact of newly implemented tax treaties on outward FDI stocks.