In this paper, we analyse the role of mobility in tax and subsidy competition. Our primary result is that increasing … mobility intensifies tax competition, it weakens subsidy competition. The resulting fall in the governments' subsidy payments … in which two governments are first engaged in subsidy competition and thereafter in tax competition, and firms locate and …

The objective of this paper is to empirically assess the recently introduced models of subsidy competition based on the … ; Investment incentives ; Foreign direct investment ; Subsidy competition …