Bilateral Tax Treaties and Chinese Enterprises'Outward Greenfield Investment:Causal Evidence from Heterogeneity of Agreement Terms
Bilateral tax treaties can reduce uncertainty and lower the tax burden in cross-border investments.However,systematic causal evidence on whether such treaties promote cross-border greenfield investment and which specific provisions are most effective is lacking.This paper stud-ies the impact of bilateral tax treaties on Chinese enterprises'outward greenfield investment using panel data from 122 countries(regions)between 2003 and 2021.The study finds that bilateral tax treaties significantly increase China's greenfield investment in the contracting countries or re-gions.This effect is stronger in countries with high institutional quality and advanced economic and social development.Key provisions,such as tax preferences and tax sparing,are critical in promoting greenfield investment.Treaties containing both provisions exhibit a stronger effect than those with only one.
NETL
NSTL
万方数据
