The effects of bilateral tax treaties on FDI activity have been unexplored, despite significant ongoing activities by ….S. inbound and outbound FDI over the period 1966-1992. Our estimates suggest a statistically significant average annual increase … of FDI activity for each additional year of a treaty which ranges from 2% to 8%, depending on the FDI activity measure …

direct investment (FDI). Of particular interest is the fact that the tax rates used under these treaties are gradually … a two-country setting with two-way capital flows. In particular, only part of FDI is immediately reversible. As the … reductions generate an increase in bilateral FDI. As countries increase the stock of capital in one another, further reductions …

order to take advantage of complementarities between types of skilled labor. This setting indicates that FDI tends to come … from and go to skill-abundant countries. It also yields an ambiguous effect of FDI on domestic relative wages. If the … complementarities between skilled labor types are large enough, then increased FDI increases the wages of both skilled and unskilled …

robust positive impact on FDI. …

order to take advantage of complementarities between types of skilled labor. This setting indicates that FDI tends to come … from and go to skill-abundant countries. It also yields an ambiguous effect of FDI on domestic relative wages. If the … complementarities between skilled labor types are large enough, then increased FDI increases the wages of both skilled and unskilled …

market - through exports or through foreign direct investment (FDI) and local supply. We show that with harmonized taxes the … international firm may choose FDI even though this has welfare costs from a global point of view. With tax competition, the host … country can enforce exporting instead of FDI. This leads to a Nash equilibrium associated with higher world welfare than …