IDEAS home Printed from https://ideas.repec.org/a/bla/ijethy/v10y2014i1p91-106.html
   My bibliography  Save this article

Coordination of tax policies toward inward foreign direct investment

Author

Listed:
  • Amy Jocelyn Glass
  • Kamal Saggi

Abstract

type="main" xml:lang="en"> We study competition for foreign direct investment (FDI) between host countries and the implications of tax policy coordination between them. By reducing its tax on multinational production, a host country can attract additional FDI, some of which is diverted from other host countries. The shift in FDI causes host wages to rise while wages elsewhere fall. The host country with the lower natural attractiveness for FDI (absent intervention) adopts a smaller tax on multinational production. Coordination between hosts eliminates the FDI diversion effect and leads them to impose a harmonized FDI tax that is larger than their non-cooperative tax levels.

Suggested Citation

  • Amy Jocelyn Glass & Kamal Saggi, 2014. "Coordination of tax policies toward inward foreign direct investment," International Journal of Economic Theory, The International Society for Economic Theory, vol. 10(1), pages 91-106, March.
    • Handle: RePEc:bla:ijethy:v:10:y:2014:i:1:p:91-106
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kenji Fujiwara, 2015. "Trade and FDI Liberalization in Multiple Oligopolies," Discussion Paper Series 131, School of Economics, Kwansei Gakuin University, revised Jul 2015.
    2. Kenji Fujiwara, 2015. "Trade and FDI Liberalization in an Oligopolistic Model: Partial versus General Equilibrium Effects," Discussion Paper Series 132, School of Economics, Kwansei Gakuin University, revised Jul 2015.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ijethy:v:10:y:2014:i:1:p:91-106. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1742-7355 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.