RSUE accepted MS 2014.pdf (730.79 kB)
Regional centrality and tax competition for FDI
journal contribution
posted on 2016-12-07, 14:08 authored by Julia Darby, Ben FerrettBen Ferrett, Ian WootonWe 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.
History
School
- Business and Economics
Department
- Economics
Published in
Regional Science and Urban EconomicsVolume
49Pages
84 - 92Citation
DARBY, J., FERRETT, B. and WOOTON, I., 2014. Regional centrality and tax competition for FDI. Regional Science and Urban Economics, 49, pp.84-92.Publisher
© ElsevierVersion
- AM (Accepted Manuscript)
Publisher statement
This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/Publication date
2014ISSN
0166-0462Publisher version
Language
- en