Policy competition for foreign direct investment between asymmetric countries
The present paper analyses policy competition for foreign direct investment between countries of different size and different market structure. We demonstrate how policy competition affects the location decision of the foreign investor and derive welfare implications. The key variables in our analysis are intra-regional trade costs, differences in market size, and minimum wages.
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"The effects of regional tax and subsidy coordination on foreign direct investment,"
Munich Reprints in Economics
19926, University of Munich, Department of Economics.
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