Barros, Pedro P; Cabral, Luis - In: Review of International Economics 8 (2000) 2, pp. 360-71
The paper analyzes "subsidy games" between countries in order to attract foreign direct investment (FDI) from a third country. The winner of this game results from the interaction of two factors, relative country size and employment gains from FDI: a large (or "central") country is more likely...