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Tax Competition for FDI in Central-European Countries

  • Milan Sedmihradsky
  • Stanislav Klazar

Most governments of the Central and East European countries adopted in 1990s tax measures for a support of foreign direct investments. Such measures usually include 10-year tax holidays and exemption from import duties. They are mostly accompanied by grants for building an infrastructure and creation of new jobs. As our data indicate and the statistical test has proved, the incentives are effective in attracting new FDI to the countries. However there are some indicators that a tax competition between the CEE countries exists.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2002/wp-cesifo-2002-01/647.PDF
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 647.

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Date of creation: 2002
Date of revision:
Handle: RePEc:ces:ceswps:_647
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  1. Howell H. Zee & Vito Tanzi, 2000. "Tax Policy for Emerging Markets; Developing Countries," IMF Working Papers 00/35, International Monetary Fund.
  2. Black, Dan A & Hoyt, William H, 1989. "Bidding for Firms," American Economic Review, American Economic Association, vol. 79(5), pages 1249-56, December.
  3. Wilson, John Douglas, 1999. "Theories of Tax Competition," National Tax Journal, National Tax Association, vol. 52(n. 2), pages 269-304, June.
  4. Patrick Lenain & Leszek Bartoszuk, 2000. "The Polish Tax Reform," OECD Economics Department Working Papers 234, OECD Publishing.
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