International Tax and Public Finance

, Volume 11, Issue 5, pp 601–622

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

  • Bruce A. Blonigen
  • Ronald B. Davies

DOI: 10.1023/B:ITAX.0000036693.32618.00

Cite this article as:
Blonigen, B.A. & Davies, R.B. International Tax and Public Finance (2004) 11: 601. doi:10.1023/B:ITAX.0000036693.32618.00


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 

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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