Gresik, Thomas A.; Schindler, Dirk; Schjelderup, Guttorm - 2020
institutional quality can be made worse off adopting policies that attract FDI as the benefits from higher wages and production are … ability to collect taxes, since the benefit of attracting more FDI outstrips the benefit of increased tax revenue. Countries … with very strong institutions benefit from FDI and should utilize their full ability to collect taxes. …