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The paper analyzes the effects of a regionally coordinated profit tax in a model with three active countries, one of which is not part of the union, and a globally mobile firm. We show that regional tax coordination can lead to two types of welfare gains. First, for investments that would take...
Persistent link: https://www.econbiz.de/10011408447
The paper analyzes the effects of a regionally coordinated profit tax in a model with three active countries, one of which is not part of the union, and a globally mobile firm. We show that regional tax coordination can lead to two types of welfare gains. First, for investments that would take...
Persistent link: https://www.econbiz.de/10013320692
those firms which have in fact located in the EU, and hance may miss the "Sherlock Holmes" cases: potential multinationals … which, like the dog that did not bark in the night, have chosen not to locate in or even to supply EU markets. In this paper …
Persistent link: https://www.econbiz.de/10014121239
countries over the last decades are consistent with tougher international competition for foreign direct investment (FDI). To … make this point we develop a model in which governments compete for FDI using corporate tax rates and tax bases. The model …
Persistent link: https://www.econbiz.de/10009302814
countries over the last decades are consistent with tougher international competition for foreign direct investment (FDI). To … make this point we develop a model in which governments compete for FDI using corporate tax rates and tax bases. The model …
Persistent link: https://www.econbiz.de/10009307961
Do multinational firms wield more market power than their domestic counterparts? Using Hungarian firm-level data between 1993 and 2007, we find that markups are 19 percent higher for foreign-owned firms than for domestically owned firms. Moreover, markups for domestically owned firms are...
Persistent link: https://www.econbiz.de/10011284902
We analyze tax competition between two countries of unequal size trying to attract a foreign-owned monopolist. When 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...
Persistent link: https://www.econbiz.de/10009623404
immiserising in the absence of Foreign Direct Investment (FDI), may be welfare-enhancing in the presence of foreign-owned firms …. The rationale is linked to the effect that the entry of FDI has on the pre-TA tariff, through contributions to the …
Persistent link: https://www.econbiz.de/10010229102
countries over the last decades are consistent with tougher international competition for foreign direct investment (FDI). To … make this point we develop a model in which governments compete for FDI using corporate tax rates and tax bases. The model …
Persistent link: https://www.econbiz.de/10013119836
We introduce the effect of the political regime in a model of North-South bilateral foreign direct investment (FDI …), and test whether it matters for the nature of FDI inflows to emerging markets. Alternative political regimes in the host … country may affect the incentive for foreign investors to implement horizontal rather than vertical FDI, if the political …
Persistent link: https://www.econbiz.de/10012729580