Chao, Chi-Chur; Yu, Eden - In: The Journal of International Trade & Economic Development 7 (1998) 1, pp. 71-85
This paper examines pollution and foreign-capital tax policies on the host country's welfare when foreign-investment tax credits are absent or present in the source country. In the absence of tax credits, the optimal policy is a pollution tax with a foreign-investment tax or subsidy. The...