This paper investigates which of the two countries \resource-rich or resourcepoor\ gains from capital market integration and capital tax competition. We develop a framework involving vertical linkages via resource-based inputs as well as international fiscal linkages between resource-rich and...

This paper reviews a number of topics that have been analyzed in the field of fiscal competition. A representative fiscal competition analysis is found in the theory of capital tax competition, in which the regional governments compete for mobile capital, using capital tax/subsidy as a policy...

This note shows that when products are complements in the mixed duopoly market, both public and private firms choose excess capacity. This contrasts with substitute case, where public firm strategically chooses under-capacity while private firm keeps holding excess capacity.