IMPACT OF DOUBLE TAXATION AGREEMENTS IN FOREIGN DIRECT INVESTMENT
IMPACT OF DOUBLE TAXATION AGREEMENTS IN FOREIGN DIRECT INVESTMENT

Summary/Abstract: Double taxation agreements aim to remove double taxation, therefore encouraging Foreign Direct Investments. DTAs are signed to avoid double international tax issues and to coordinate the mutual or multilateral economic interoperability national tax system. Nevertheless, another motive to engage in these deals is to ease the flow of international economics, particularly capital and attracting foreign capital. FDI growth is a wanted policy goal for developing and developed countries. To examine whether the agreements have an important influence on FDI, this document analyzes Albania's foreign direct reserves in the host countries over the period 2001-2016. By means of segmented and econometric data, the paper presents the effects of doubling double DTA deals from developed countries in less developed countries. As an assessment technique, mainly the use of fixed effect estimations and regression with standard error correction standards in the panel to handle heteroscedasticity and autocorrelation, in addition to some other sustainability-specific specifications. After checking for the various FDI balance sheet factors, the outcomes of the study show that the deals are certainly positively related to Foreign Direct Investment.

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