International Investment Agreements, Double-Taxation Treaties and Multinational Activity: The (Heterogeneous) Effects of Binding

Monika Sztajerowska

PSE Working Papers from HAL

Abstract: There are close to 3,000 international investment agreements (IIAs) that aim to protect and promote cross-border investment. Do they achieve their main purpose? This paper provides novel firm-level evidence on the effects of IIAs on location decisions of multinational enterprises (MNEs) in a multi-country context. It uses unique micro-level data on the location of MNEs' affiliates globally and country-pair data on the coverage and content of treaties over a twenty-year period (1990-2010). It finds that IIAs, in particular those with the investor state dispute settlement (ISDS), increase the probability of MNEs' first foreign entry when they are accompanied by a double-taxation treaty. This interaction between investment and tax treaties can have important policy implications.

Keywords: Double Taxation Treaties; Bilateral Investment Agreements; Multinational Enterprises; Double Taxation Treaties Multinational Enterprises (search for similar items in EconPapers)
Date: 2021-06
New Economics Papers: this item is included in nep-fdg, nep-int and nep-law
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03265057v1
References: Add references at CitEc
Citations:

Downloads: (external link)
https://shs.hal.science/halshs-03265057v1/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:psewpa:halshs-03265057

Access Statistics for this paper

More papers in PSE Working Papers from HAL
Bibliographic data for series maintained by CCSD ().