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Investment incentives and the global competition for capital

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  • Thomas, Kenneth P.

Abstract

Investment incentives (subsidies designed to affect the location of investment) are a pervasive feature of global competition for foreign direct investment. This Perspective analyzes what is known about the extent and cost of incentives used as well as the potential efficiency, equity, and environmental consequences of using incentives. Finally, it analyzes methods of controlling incentives, the most successful of which is embodied in European Union regional aid policy.

Suggested Citation

  • Thomas, Kenneth P., 2011. "Investment incentives and the global competition for capital," Columbia FDI Perspectives 54, Columbia University, Columbia Center on Sustainable Investment (CCSI).
    • Handle: RePEc:zbw:colfdi:54
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    File URL: https://www.econstor.eu/bitstream/10419/253888/1/fdi-perspectives-no054.pdf
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    Cited by:

    1. Ferrari, Alessandro & Ossa, Ralph, 2023. "A quantitative analysis of subsidy competition in the U.S," Journal of Public Economics, Elsevier, vol. 224(C).
    2. Christine Wen, 2024. "Do Economic Development Tax Abatements Affect School Finances?," Economic Development Quarterly, , vol. 38(1), pages 3-14, February.
    3. Osiris Jorge Parcero, 2024. "Optimal National policies towards multinationals when local regions can choose between firm-specific and non-firm-specific policies," Papers 2401.04243, arXiv.org.

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