The standard neo-classical view on tax competition. A diagrammatic survey and some deductions for small open economies
This paper presents a diagrammatic survey of the standard neo-classical theory of tax competition for foreign direct investment and tax coordination between countries. It has four aims: to give a detailed view of the main theoretical and empirical results; to extract from it some general deductions for small and less developed open economies; to discuss different angles to improve the existing literature; and to put these in the context of fiscal policy in the European Union. It argues that eventual benefits brought by corporate tax harmonisation in the EU are not sufficient to compensate the risk of doing harm to small and relatively poor economies. Further research on equity issues is therefore needed before proceeding to harmonisation.
|Date of creation:||2005|
|Date of revision:|
|Contact details of provider:|| Postal: Estrada do Sineiro - 6200 Covilhã|
Phone: 275 319600
Fax: 275 319601
Web page: http://www.dge.ubi.pt
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:csh:wpecon:e01/2005. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carla Loureiro)
If references are entirely missing, you can add them using this form.