Economics, public finance, domestic revenue mobilisation & budget support
public
group

Group info
More info
Information

The Cost and Benefits of Tax Treaties with Investment Hubs: Findings from Sub-Saharan Africa (IMF Working Paper)

Link: https://www.imf.org/en/Publications/WP/Issues/2018/10/24/The-Cost-and-Be...

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.

Register or log in to comment

Info posted by

Xavier Le Mounier
|
25 October 2018

Do more through capacity4dev