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Please use this identifier to cite or link to this item: https://dspace.lboro.ac.uk/2134/23370

Title: Fiscal competition for FDI when bidding is costly
Authors: Ferrett, Benjamin E.
Wooton, Ian
Issue Date: 2013
Publisher: Economics Bulletin
Citation: FERRETT, B. and WOOTON, I., 2013. Fiscal competition for FDI when bidding is costly. Economics Bulletin, 33 (3), pp.2202-2208.
Abstract: We introduce bidding costs into a standard model of tax/subsidy competition between two potential host countries to attract the plant of a monopoly firm. Such a bidding cost, even if it is infinitesimal, qualitatively alters the resulting equilibrium. At most one country offers fiscal inducements to the firm, and this attenuates the familiar "race to the bottom" in corporate taxes. In general, the successful host country benefits from the resulting absence of active tax/subsidy competition, at the expense of the owners of the firm in the rest of the world.
Version: Published
URI: https://dspace.lboro.ac.uk/2134/23370
Publisher Link: http://www.accessecon.com/pubs/EB/
ISSN: 1545-2921
Appears in Collections:Published Articles (Economics)

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