International Tax and Public Finance

, Volume 11, Issue 5, pp 601–622 | Cite as

The Effects of Bilateral Tax Treaties on U.S. FDI Activity

  • Bruce A. Blonigen
  • Ronald B. Davies

Abstract

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 1980–1999. Robust to a wide variety of alternative specifications, we find little evidence that bilateral tax treaties increase FDI activity, contrary to OECD-stated goals for such treaties.

foreign direct investment tax treaties multinational corporations 

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Copyright information

© Kluwer Academic Publishers 2004

Authors and Affiliations

  • Bruce A. Blonigen
    • 1
  • Ronald B. Davies
    • 2
  1. 1.Department of Economics1285 University of Oregon and NBEREugene
  2. 2.Department of Economics1285 University of OregonEugene

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