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Redistributive Income Taxation, Outsourcing and Foreign Direct Investment


  • Aronsson, Thomas

    () (Department of Economics, Umeå University)

  • Koskela, Erkki

    () (Department of Economics)


This paper deals with optimal income taxation under international outsourcing and FDI. We show how the joint effect of outsourcing and FDI on the optimal marginal income tax rates depends on whether FDI is horizontal or vertical.

Suggested Citation

  • Aronsson, Thomas & Koskela, Erkki, 2010. "Redistributive Income Taxation, Outsourcing and Foreign Direct Investment," Umeå Economic Studies 808, Umeå University, Department of Economics.
  • Handle: RePEc:hhs:umnees:0808

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    References listed on IDEAS

    1. B. d'Hombres & L. Rocco & M. Suhrcke & M. McKee, 2010. "Does social capital determine health? Evidence from eight transition countries," Health Economics, John Wiley & Sons, Ltd., vol. 19(1), pages 56-74.
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    More about this item


    optimal taxation; redistribution; outsourcing; foreign direct investment;

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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