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Strategic Public Housing and Foreign Direct Investment

  • Kristof Dascher

    (University College Dublin)

We suggest that public housing matters for FDI. We assume that FDI creates gains for some residents and losses for others. Losers from FDI will oppose FDI. To win support for FDI, local government may want to pay compensation in cash. In the paper’s model, however, cash payments are not successful. But public housing is. – Ultimately we argue that (1) public housing makes FDI more palatable where (2) cash transfers fail, so that (3) local government may choose to invest into public housing to overcome opposition against FDI.

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File URL: http://www.ucd.ie/economics/research/papers/2002/WP02.23.pdf
File Function: First version, 2002
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Paper provided by School of Economics, University College Dublin in its series Working Papers with number 200223.

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Length: 25 pages
Date of creation: 08 Oct 2002
Date of revision:
Handle: RePEc:ucn:wpaper:200223
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Web page: http://www.ucd.ie/economics

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  1. Alberto Alesina & Dani Rodrik, 1991. "Distributive Politics and Economic Growth," NBER Working Papers 3668, National Bureau of Economic Research, Inc.
  2. Bearse, P. & Glomm, G. & Janeba, E., 2000. "Why poor countries rely mostly on redistribution in-kind," Journal of Public Economics, Elsevier, vol. 75(3), pages 463-481, March.
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