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Please use this identifier to cite or link to this item: https://dspace.lboro.ac.uk/2134/23369

Title: Regional centrality and tax competition for FDI
Authors: Darby, Julia
Ferrett, Benjamin E.
Wooton, Ian
Issue Date: 2014
Publisher: © Elsevier
Citation: DARBY, J., FERRETT, B. and WOOTON, I., 2014. Regional centrality and tax competition for FDI. Regional Science and Urban Economics, 49, pp.84-92.
Abstract: We examine a trade model where three countries compete for an exogenous number of firms. In our hub- and- spoke framework, one country is the hub through which all trade with and between spokes takes place. We establish the distribution of industrial activity in the absence of taxes and compare it to the equilibrium when countries compete to attract firms. Even when all countries have the same size, the centrality of the hub sets it apart. We determine how this trading pattern matters, comparing it to a structure with direct trade between all countries. The implications of international tax competition are also examined.
Version: Accepted for publication
DOI: 10.1016/j.regsciurbeco.2014.08.006
URI: https://dspace.lboro.ac.uk/2134/23369
Publisher Link: http://dx.doi.org/10.1016/j.regsciurbeco.2014.08.006
ISSN: 0166-0462
Appears in Collections:Published Articles (Economics)

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