Regional centrality and tax competition for FDI
Darby, Julia and Ferrett, Ben and Wooton, Ian (2014) Regional centrality and tax competition for FDI. Regional Science and Urban Economics, 49. pp. 84-92. ISSN 0166-0462
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Abstract
We examine a trade model where three countries compete for an exogenous number of firms. In our hub-and-spoke framework, one country is the hub through which all trade with and between spokes takes place. We establish the distribution of industrial activity in the absence of taxes and compare it to the equilibrium when countries compete to attract firms. Even when all countries are the same size, the centrality of the hub sets it apart. We determine how this trading pattern matters, comparing it to a structure with direct trade between all countries. The implications of international tax competition are also examined.
Creators(s): |
Darby, Julia ![]() ![]() | Item type: | Article |
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ID code: | 49078 |
Keywords: | corporate taxes, hub and spoke, trade costs, devolution, Finance, Economic Theory, Economics, Econometrics and Finance(all) |
Subjects: | Social Sciences > Finance Social Sciences > Economic Theory |
Department: | Strathclyde Business School > Economics |
Depositing user: | Pure Administrator |
Date deposited: | 22 Aug 2014 10:28 |
Last modified: | 12 Feb 2021 04:37 |
Related URLs: | |
URI: | https://strathprints.strath.ac.uk/id/eprint/49078 |
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