Tax treaties are often seen as a means to mitigate fierce tax competition. We challenge this view by arguing that taxes on passive income reduce e↵ective average tax rates, and induce neighbouring countries to react by reducing bilateral tax rates. As opposed to traditional tax competition,...

Out of a total of 2,976 double tax agreements (DTAs), some 60% are signed between a developing and a developed economy. As DTAs shift taxing rights from capital importing to capital exporting countries, the prior would incur a loss. We demonstrate in a theoretical model that in a deal one...

Tax treaties are often seen as a means to mitigate fierce tax competition. Building on former literature, we challenge this view by arguing that taxes on passive income reduce effective average tax rates; and induce neighbouring countries to react by reducing bilateral tax rates. As opposed to...

This paper investigates the effects of double tax treaties (DTTs) on foreign direct investment (FDI) after controlling for their relevance in the presence of treaty shopping. DTTs cannot be considered a bilateral issue, but must be viewed as a network, since FDI can flow from home to host...