The Cost and Benefits of Tax Treaties with Investment Hubs : Findings from Sub-Saharan Africa
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 a...
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| Language: | English |
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/325021540479671671/The-Cost-and-Benefits-of-Tax-Treaties-with-Investment-Hubs-Findings-from-Sub-Saharan-Africa http://hdl.handle.net/10986/30643 |
| Summary: | 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. |
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