search query: @author Raff, H. / total: 5
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| Author: | Raff, H. Srinivasan, K. |
| Title: | Tax incentives for import-substituting foreign investment: does signaling play a role? |
| Journal: | Journal of Public Economics
1998 : FEB, VOL. 67:2, p. 167-194 |
| Index terms: | TAXATION INCENTIVES FOREIGN INVESTMENT |
| Language: | eng |
| Abstract: | this paper constructs a game-theoretic model to study host country policy to attract import-substituting foreign direct investment (FDI). Investors are assumed to be incompletely informed about local investment conditions, and taxes and tariffs are determined endogenously. The authors show that in certain situations countries will offer tax incentives to while in others they will impose a tariff wall to induce FDI. Tax incentives are motivated by the need to signal favorable investment conditions. |
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