Foreign Direct Investment and Industrial Structure in Developing Countries
AbstractWithin a framework of differentiated oligopolies, this paper studies how the tax incentive of a developing country on foreign direct investment (FDI) affects the structure of a specific domestic industry. Benefits from the tax incentive are analysed based upon the effects of the tax reduction on host and foreign sectors' prices, outputs, and entry and exit of firms in the industry.
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Bibliographic InfoPaper provided by School of Economics, La Trobe University in its series Working Papers with number 1996.12.
Length: 19 pages
Date of creation: 1996
Date of revision:
Industrial Structure; Oligopolies; Taxation; Foreign Investments;
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