Mário Marques, Carlos Pinho

Tax-Treaty Effects on Foreign Investment: Evidence from European Multinationals

Section: Articles
FinanzArchiv (FA)

Volume 70 () / Issue 4, pp. 527-555 (29)

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This paper reexamines the effects of bilateral tax treaties on investment location decisions, using a large panel of European countries. It provides evidence that tax treaties induced a positive and significant impact on the number of foreign subsidiaries incorporated in the last decade. Findings also suggest positive effects of treaty features other than withholding tax rates and double-taxation relief methods. When they are analyzed separately, we also find evidence confirming that the host country's corporate tax rate is a determining factor in the location of foreign subsidiaries.

Mário Marques No current data available.

Carlos Pinho No current data available.