Chisik, Richard; Davies, Ronald B. - Department of Economics, Ryerson University - 2010
Tax treaties are often viewed as a mechanism for eliminating tax competition, however this approach ignores the need … countries will negotiate treaties with higher tax rates. This theory is then tested using 1992 data from U.S. bilateral tax … treaties. Overall, the data supports the prediction that greater asymmetric FDI activity increases the negotiated tax rates. …