English, Article edition: Inter-jurisdiction subsidy competition for a new production plant: What is the central government optimal policy? Parcero, O.J.

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Physical Description
  • article
Language
  • English

Edition details

Title
  • Inter-jurisdiction subsidy competition for a new production plant: What is the central government optimal policy?
Author
  • Parcero, O.J.
Physical Description
  • article
Notes
  • This paper models inter-jurisdiction competition for foreign direct investment and optimal government policy intervention to protect the national interest. The inter-jurisdiction competition for a multinational has the potential of favouring the multinational and of becoming detrimental for the host country. The central government wants to limit such competition but it cannot tax-discriminate between different types of multinationals. We find that the central government would use tax policy to create asymmetries even when the underlying structure is symmetrical. This offers a novel explanation for the creation of [`]Special Economic Zones' in many countries, which are well known to be aimed at the attraction of foreign direct investment.
  • Bargaining Subsidy Regional Competition Foreign direct investment (FDI)
  • RePEc:eee:regeco:v:37:y:2007:i:6:p:688-702
Language
  • English
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