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Foreign Investment Incentives and International Cross-Hauling of Capital

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  • Harry Huizinga

Abstract

This note shows how international tax competition can give rise to special tax breaks for foreign investment. Discriminatory tax treatment of outside investment can give rise to socially harmful cross-flows of international investment. Paradoxically, an increase in the costs associated with foreign investment can increase welfare.

Suggested Citation

  • Harry Huizinga, 1991. "Foreign Investment Incentives and International Cross-Hauling of Capital," Canadian Journal of Economics, Canadian Economics Association, vol. 24(3), pages 710-716, August.
    • Handle: RePEc:cje:issued:v:24:y:1991:i:3:p:710-16
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    Cited by:

    1. Giofré, Maela, 2021. "Stock exchange consolidation and cross-border investment: An empirical assessment," Journal of Financial Stability, Elsevier, vol. 53(C).
    2. Magnus Blomstrom & Ari Kokko, 2003. "The Economics of Foreign Direct Investment Incentives," NBER Working Papers 9489, National Bureau of Economic Research, Inc.

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