Publication: The Cost and Benefits of Tax Treaties with Investment Hubs: Findings from Sub-Saharan Africa
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2018-10
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2018-11-01
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This paper investigates the costs and benefits of concluding double tax treaties with investment hubs. Based on a sample of 41 African economies from 1985–2015, the results suggest that signing treaties with investment hubs is not associated with additional investments; yet, these treaties tend to come with nonnegligible revenue losses. Building on a theoretical model, the paper investigates the role of treaty shopping in driving nominal investment flows and provides indirect evidence for its importance in the sample.
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“Beer, Sebastian; Loeprick, Jan. 2018. The Cost and Benefits of Tax Treaties with Investment Hubs: Findings from Sub-Saharan Africa. Policy Research Working Paper;No. 8623. © World Bank. http://hdl.handle.net/10986/30643 License: CC BY 3.0 IGO.”
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