Globalisation squeezes the public sector—is it so obvious?
AbstractIt is widely perceived that globalization squeezes public sector activities by making taxation more costly. This is attributed to increased factor mobility and to a more elastic labour demand due to improved scope for relocation of production and thus employment across countries. We argue that this consensus view overlooks that gains from trade unambiguously work to lower the marginal costs of public funds, and moreover that globalization via increased trade in intermediaries may actually lower the labour demand elasticity.
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Bibliographic InfoArticle provided by Springer in its journal International Tax and Public Finance.
Volume (Year): 18 (2011)
Issue (Month): 4 (August)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=102915
Globalization; Marginal costs of public funds; Labour taxation; F15; F4; H20; H40;
Other versions of this item:
- Torben M. Andersen & Allan Sørensen, 2008. "Globalisation squeezes the public sector - is it so obvious?," Economics Working Papers 2008-08, School of Economics and Management, University of Aarhus.
- F15 - International Economics - - Trade - - - Economic Integration
- F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
- H40 - Public Economics - - Publicly Provided Goods - - - General
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