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Please use this identifier to cite or link to this item: https://dspace.lboro.ac.uk/2134/23372

Title: Tax competition and the international distribution of firm ownership: an invariance result
Authors: Ferrett, Benjamin E.
Wooton, Ian
Issue Date: 2010
Publisher: © Springer
Citation: FERRETT, B. and WOOTON, I., 2010. Tax competition and the international distribution of firm ownership: an invariance result. International Tax and Public Finance, 17 (5), pp.518-531.
Abstract: How does the international distribution of firm ownership affect the outcomes of tax/subsidy competition for mobile plants? As corporate ownership becomes increasingly globalised, this question becomes increasingly important for policy. We prove a strong invariance result in the context of the tax/subsidy competition between two host countries for a monopoly firm’s plant. Both the equilibrium plant location and the equilibrium tax/subsidy offers are independent of the international distribution of the firm’s ownership. The reason is that the tax/subsidy competition equalises the firm’s post-tax profits across countries, making owners of capital indifferent towards the location of production.
Description: The final publication is available at Springer via: http://dx.doi.org/10.1007/s10797-009-9126-z.
Version: Accepted for publication
DOI: 10.1007/s10797-009-9126-z
URI: https://dspace.lboro.ac.uk/2134/23372
Publisher Link: http://dx.doi.org/10.1007/s10797-009-9126-z
ISSN: 0927-5940
Appears in Collections:Published Articles (Economics)

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