Please use this identifier to cite or link to this item:
Harendt, Christoph
Dreßler, Daniel
Overesch, Michael
Year of Publication: 
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2016: Demographischer Wandel - Session: Firm Behavior in the Global Economy A24-V2
We revisit the effects of double tax treaties on foreign direct investment. Previous empirical studies provide somewhat counterintuitive results suggesting insignificant or even negative effects of tax treaties. Using a rich firm-level dataset provided by the German Central Bank we analyze the investment impact of double tax treaties and repatriation taxes between more than 3,000 country pairs. Whereas we do not find a significant effect of tax treaties on overall investment, we show that repatriation taxes have an adverse effect on fixed assets and a positive effect on financial assets. The latter supports the assumption that firms defer profit distribution to avoid taxes. Correspondingly, we also find that revenue reserves increase in repatriation taxes.
Document Type: 
Conference Paper

Files in This Item:

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.