Facundo, Albornoz; Gregory, Corcos - In: The B.E. Journal of Economic Analysis & Policy 7 (2007) 1, pp. 1-27
Regional integration makes relocation a more attractive option for Multinational Corporations (MNC), influencing in turn the provision of investment incentives by member countries. We examine in this context the effects of subsidy competition. To do so, we model the strategic interaction between...