The Effects of Bilateral Tax Treaties on U.S. FDI Activity

Blonigen, Bruce; Davies, Ronald
September 2004
International Tax & Public Finance;Sep2004, Vol. 11 Issue 5, p601
Academic Journal
The effects of bilateral tax treaties on FDI activity have been unexplored, despite significant ongoing activities by countries to negotiate and ratify these treaties. This paper estimates the impact of bilateral tax treaties using both U.S. inbound and outbound FDI over the period 1980-1999. Robust to a wide variety of alternative specifications, we find little evidence that bilateral tax treaties increase FDI activity, contrary to OECD-stated goals for such treaties.


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