The purpose of this paper is two-fold. First, it develops a theoretical model of international joint ventures to suggest a new approach to the determination of profit allocation between the partners in the joint venture. Second, we examine the issue of tax competition between two countries for...

This paper suggests a new approach to the determination of profit allocation between the partners in international joint ventures (IJVs). We also examine the issue of partnership choice. The foreign firm gives a large share of profits to its partner and in return receives a better tax treatment...

This paper establishes, in a very general setting, necessary and sufficient conditions for harmonization of economic policies to be welfare-improving. As an application, it is shown that under circumstances in which harmonization is known to be welfare-improving when taxes are levied on a...

We present a model with three blocks of nations: two of the blocks are members of a Customs Union (CU) and maintain a common external tariff (CET) on the third (non member). One of the member blocks is a block of new entrants. The producing lobby is assumed to be union-wide and lobbies...