In an integration process, the quality of the agreement reached depends on the affinity observed in the domestic strategies and policies. Insofar as they are compatible, the agreement will be successful. Therefore, the harmonization of policies in regional integration agreements is justified....

Corporate tax levels have fallen substantially in Europe during the last decades. A broad literature has identified tax competition as one reason for this decline in corporate tax levels. However, none of these studies explicitly asks the question whether tax competition within regions is...