An FDI-driven approach to measuring the scale and economic impact of BEPS

Richard Bolwijn, Bruno Casella and Davide Rigo

MPRA Paper from University Library of Munich, Germany

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 (search for similar items in EconPapers)
JEL-codes: F02 F23 F36 F38 (search for similar items in EconPapers)
Date: 2018-09-14
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (21)

Published in Transnational Corporations 2.25(2018): pp. 107-143

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:95189

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