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regional governments have only a lump-sum profit tax (subsidy) at their disposal, but face exogenous and identical transport … costs for imports, then both countries will always offer to subsidize the firm. Furthermore, the maximum subsidy is greater …
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We model subsidy competition for a foreign MNC's investment in two trading partners. Taking into account acquisitions …
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Introducing this volume of the EIB Papers and linking the various contributions, this paper emphasises that the internationalisation of production in Europe, which creates cross-border production networks, is an increasingly important element of globalisation, has been spreading to new EU...
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