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Subsidy competition and the role of firm ownership

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Author Info
Ferdinand Mittermaier
Abstract

This paper addresses the role that foreign vs. domestic ownership of companies plays for governments in asymmetric countries’ competition for a multinational’s subsidiary. I argue that equilibrium subsidies as well as a foreign investor’s location decision in policy competition between these countries critically depend on the ownership structure of incumbent firms. This shows that small countries with few national incumbents in an industry may be successful in attracting multinationals.

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File URL: http://www.bgpe.de/texte/DP/032_mittermayer.pdf
File Format: application/pdf
File Function: First version, 2007
Download Restriction: no

Publisher Info
Paper provided by Bavarian Graduate Program in Economics (BGPE) in its series Working Papers with number 032.

Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Length: 13 pages
Date of creation: Sep 2007
Date of revision:
Handle: RePEc:bav:wpaper:032_mittermaier

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Web page: http://www.bgpe.de/
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Related research
Keywords: Subsidy competition foreign direct investment regional location

Find related papers by JEL classification:
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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This page was last updated on 2008-7-16.

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