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Author:Ludema, R.
Wooton, I.
Title:Economic geography and the fiscal effects of regional integration
Journal:Journal of International Economics
2000 : DEC, VOL. 52:2, p. 331-358
Index terms:INTERNATIONAL ECONOMICS
GEOGRAPHY
FISCAL POLICY
Language:eng
Abstract:In models of economic geography, plant-level scale economies and trade costs create incentives for spatial agglomeration of production into a manufacturing core and agricultural periphery, creating regional income differentials. The authors examine tax competition between national governments to influence the location of manufacturing activity. Labor is imperfectly mobile and governments impose redistributive taxes.
SCIMA record nr: 222875
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