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The effects of bilateral tax treaties on FDI activity have been unexplored, despite significant ongoing activities by countries to negotiate and ratify these treaties. This paper estimates the impact of bilateral tax treaties using both U.S. inbound and outbound FDI over the period 1966-1992....
Persistent link: https://www.econbiz.de/10005635094
Tax incentives offered to attract firms engaged in foreign direct investment are often tied to performance requirements such as domestic content restrictions. The tax competition literature has repeatedly shown that competition between municipalities for mobile firms tends to drive taxes to low...
Persistent link: https://www.econbiz.de/10005635098
Tax treaties are often viewed as a mechanism for eliminating tax competition, however this approach ignores the need for bargaining over the treaty’s terms. This paper focuses on how bargaining can affect the withholding taxes set under the treaty. In a simple framework, we develop hypotheses...
Persistent link: https://www.econbiz.de/10005635100
This paper examines the extent to which foreign direct investment (FDI) affects child labor. Using 1995 data for 145 countries, we find that, contrary to common fears, FDI is negatively correlated with child labor. This effect, however, disappears when controlling for per capita income. After...
Persistent link: https://www.econbiz.de/10005635126
This paper reviews selected aspects of economic relations between the EU and Russia, focusing on the impact that the … last two waves of EU enlargement have had on Russia, as well as the role of the euro in Russia. The analysis suggests that … if EU enlargement has had any diversion effects on trade between the EU and Russia at all, they have been minimal, while …
Persistent link: https://www.econbiz.de/10005222251
This paper studies the effect of foreign direct investment (FDI) on environmental policy stringency in a two-country model with trade costs, where FDI could be unilateral and bilateral and both governments address local pollution through environmental taxes. We show that FDI does not give rise...
Persistent link: https://www.econbiz.de/10005222312
knowledge-capital framework specification. Overall, the empirical findings suggest that euro area patents (ownership advantage …), various variables related to productivity in the United States (location advantage), the volume of bilateral telephone traffic … to the United States relative to euro area GDP (ownership advantage), euro area stock market developments (Tobin's Q …
Persistent link: https://www.econbiz.de/10005222317
This paper provides empirical evidence on the determinants of foreign ownership in manufacturing industries. Foreign … ownership, according to the theory of international production, is the result of the combination of comparative and competitive … advantage. An adequate examination of the ownership structure of an industry requires the ability to establish empirically the …
Persistent link: https://www.econbiz.de/10005222858
An important feature of the world economy is the close global and regional integration due to strong trade and investment relations among countries. The high degree of integration between countries is likely to give rise to business cycle synchronisation in which case shocks will spillover from...
Persistent link: https://www.econbiz.de/10005225460
This paper applies a general-to-specific analysis to detect regularities in the driving forces of foreign direct investment (FDI) that can explain why some regions are more attractive to foreign investors than others. The results suggest that regional differences in FDI inflows to African, Asian...
Persistent link: https://www.econbiz.de/10005225496