The Cost and Benefits of Tax Treaties with Investment Hubs: Findings from Sub-Saharan Africa

• Author(s): Sebastian Beer, Jan Loeprick,
• Publisher: International Monetary Fund
• Pages: 38
• ISBN_10: 1484378008
  ISBN_13: 9781484378007
  
• Language: en
• Categories: Business & Economics / Taxation / General , Business & Economics / Public Finance , Business & Economics / Taxation / Corporate ,

Description:... 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