Redistributive Income Taxation under Outsourcing and Foreign Direct Investment
Abstract
This paper deals with optimal income taxation under labor outsourcing and FDI. We show how the optimal income tax response to the joint effect of outsourcing and FDI depends on whether FDI is complementary with, or substitutable for, domestic labor.Download Info
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3051.Length:
Date of creation: 2010
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Handle: RePEc:ces:ceswps:_3051
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Related research
Keywords: outsourcing; foreign direct investment; optimal nonlinear taxation;Find related papers by JEL classification:
- D60 - Microeconomics - - Welfare Economics - - - General
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Martin Feldstein, 1994.
"The Effects of Outbound Foreign Direct Investment on the Domestic Capital Stock,"
NBER Working Papers
4668, National Bureau of Economic Research, Inc.
- Martin S. Feldstein, 1995. "The Effects of Outbound Foreign Direct Investment on the Domestic Capital Stock," NBER Chapters, in: The Effects of Taxation on Multinational Corporations, pages 43-66 National Bureau of Economic Research, Inc.
- Aronsson, Thomas & Koskela, Erkki, 2009. "Outsourcing and optimal nonlinear taxation: A note," Economics Letters, Elsevier, vol. 102(2), pages 135-137, February.
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- Mihir A. Desai & C. Fritz Foley & James R. Hines Jr., 2005.
"Foreign Direct Investment and the Domestic Capital Stock,"
American Economic Review,
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- Mihir C. Desai & C. Fritz Foley & James R. Hines Jr., 2005. "Foreign Direct Investment and the Domestic Capital Stock," NBER Working Papers 11075, National Bureau of Economic Research, Inc.
- Changkyu Choi, 2006. "Does foreign direct investment affect domestic income inequality?," Applied Economics Letters, Taylor and Francis Journals, vol. 13(12), pages 811-814.
- Alexander Hijzen, 2007. "International Outsourcing, Technological Change, and Wage Inequality," Review of International Economics, Wiley Blackwell, vol. 15(1), pages 188-205, 02.
- Stiglitz, Joseph E., 1982.
"Self-selection and Pareto efficient taxation,"
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