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| Author: | Haufler, A. Wooton, I. |
| Title: | The effects of regional tax and subsidy coordination on foreign direct investment |
| Journal: | European Economic Review
2006 : FEB, VOL. 50:2, p. 285-305 |
| Index terms: | competition direct investment subsidies taxation |
| Language: | eng |
| Abstract: | This article examines the impact of regional tax and subsidy coordination on foreign direct investment. The model contains three active countries, one of which is not a member of the union, and a globally mobile company. The authors find that regional coordination can result in two kinds of welfare gain by transferring location rents, and by attracting more welfare-enhancing investments. |
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