Foreign Investment Incentives and International Cross-Hauling of Capital
This note shows how international tax competition can give rise to special tax breaks for foreign investment. Discriminatory tax treatment of outside investment can give rise to socially harmful cross-flows of international investment. Paradoxically, an increase in the costs associated with foreign investment can increase welfare.
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Volume (Year): 24 (1991)
Issue (Month): 3 (August)
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