Abstract
Bilateral tax treaties are an important method of international tax cooperation. I survey the existing literature on these agreements, highlighting the differences between the standard view that treaties increase foreign direct investment and the empirical evidence that finds little support for this. I also discuss the key differences in treaty formation between developed countries relative to that between developed and developing nations.
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Davies, R.B. Tax Treaties and Foreign Direct Investment: Potential versus Performance. International Tax and Public Finance 11, 775–802 (2004). https://doi.org/10.1023/B:ITAX.0000045331.76700.40
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DOI: https://doi.org/10.1023/B:ITAX.0000045331.76700.40