The effect of Double Taxation Treaties and Territorial Tax Systems on Foreign Direct Investment: Evidence for Spain

Ángela Castillo-Murciego and Julio López Laborda
Authors registered in the RePEc Author Service: Julio López-Laborda

No 2018-21, Economics Discussion Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: The present paper evaluates the effect of Double Taxation Treaties and the Territorial Tax System of countries on Spain's inward and outward FDI for the period 1993-2013. Estimations produce a positive and statistically significant effect of Treaties for both samples when using a simple binary variable for measuring the effect of the mere existence of the same. These outcomes keep for old and new Treaties and for the sub-sample of developed partner countries of Spain. However, regarding developing countries, the positive result exists only for the outbound sample. Also for the global samples and the sub-samples of developed countries, there is an additional positive effect on investments for countries applying the Territorial Tax System for taxing foreign income.

Keywords: Foreign Direct Investment; Double Taxation Treaty; Territorial Tax System; Spain (search for similar items in EconPapers)
JEL-codes: F21 F23 F68 H25 H32 H87 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-acc, nep-int, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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http://www.economics-ejournal.org/economics/discussionpapers/2018-21
https://www.econstor.eu/bitstream/10419/175072/1/1014499712.pdf (application/pdf)

Related works:
Journal Article: The effect of double taxation treaties and territorial tax systems on foreign direct investment: Evidence for Spain (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwedp:201821

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