Petkova, Kunka; Stasio, Andrzej; Zagler, Martin - 2020 - Draft: February 28, 2020
Tax treaties are often seen as a means to mitigate fierce tax competition. Building on former literature, we challenge … react by reducing bilateral tax rates. As opposed to traditional tax competition, where every foreign investor would benefit …, leaving taxes for everyone else unaffected. We call this bilateral tax competition, and we test these predictions empirically …