Remittances are considered as an important component of GDP in many developing countries. In order to increase remittance inflows many countries are now actively involved in labour export and thereby competing with other labour exporting countries in the international market. In this paper we have conceptualised the competition by proposing a model where two countries export labour to a third country. The third country imposes differential tax rates on the income of foreign workers. We have explored the process of imposition of tax rates by importing country and found that tax burden is higher for the country with higher labour endowment.
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Paper provided by University of Nottingham, CREDIT in its series Discussion Papers with number
09/02.
References listed on IDEAS Please 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.:
Nancy H. Chau & Ravi Kanbur, 2006.
"The Race to the Bottom, from the Bottom,"
Economica,
London School of Economics and Political Science, vol. 73(290), pages 193-228, 05.
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