The Cost and Benefits of Tax Treaties with Investment Hubs: Findings from Sub-Saharan Africa

Sebastian Beer and Jan Loeprick

No 8623, Policy Research Working Paper Series from The World Bank

Abstract: This paper investigates the costs and benefits of concluding double tax treaties with investment hubs. Based on a sample of 41 African economies from 1985?2015, the results suggest that signing treaties with investment hubs is not associated with additional investments; yet, these treaties tend to come with nonnegligible revenue losses. Building on a theoretical model, the paper investigates the role of treaty shopping in driving nominal investment flows and provides indirect evidence for its importance in the sample.

Date: 2018-10-25
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Citations: View citations in EconPapers (12)

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Working Paper: The Cost and Benefits of Tax Treaties with Investment Hubs: Findings from Sub-Saharan Africa (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:8623

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