Do tax sparing agreements contribute to the attraction of FDI in developing countries?

Céline Azemar, Rodolphe Desbordes and Jean-Louis Mucchielli
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Céline Azemar: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: Measuring the effects of taxation on FDI in developing countries requires consideration of the tax sparing provision. This provision signed between developed and developing countries protects host country fiscal incentives for FDI. This paper estimates the impact of tax sparing provisions on Japanese outbound FDI between 1989 and 2000. We find evidence that the tax sparing provision influences positively the location of Japanese FDI, even after having taken into account reversal causality.

Keywords: Foreign direct investment; Tax sparing; International taxation (search for similar items in EconPapers)
Date: 2007-10
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Citations: View citations in EconPapers (14)

Published in International Tax and Public Finance, 2007, 14 (5), pp.543-562. ⟨10.1007/s10797-006-9005-9⟩

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Related works:
Journal Article: Do tax sparing agreements contribute to the attraction of FDI in developing countries? (2007)
Working Paper: Do tax sparing agreements contribute to the attraction of FDI in developing countries? (2007)
Working Paper: Do tax sparing agreements contribute to the attraction of FDI in developing countries? (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:halshs-00310534

DOI: 10.1007/s10797-006-9005-9

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