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dc.contributor.authorDe Santis, Roberto A.en_US
dc.contributor.authorStähler, Franken_US
dc.date.accessioned2009-01-28T14:58:59Z-
dc.date.available2009-01-28T14:58:59Z-
dc.date.issued2000en_US
dc.identifier.urihttp://hdl.handle.net/10419/17712-
dc.description.abstractThis paper discusses environmental policies in response to foreign direct investment (FDI) in a symmetrie two-country setting, where firms' behavior affects government policy decisions. We show that two alternative equilibria with FDI are possible: (i) one with unilateral FDI, where one firm is a multinational firm, and the other firm is a national firm; (ii) and one with bilateral FDI, where both firms become multinational firms. With regard to strategic environmental policies, we show that the country attracting FDI introduces a Pigouvian environmental tax, whereas the country served by the local firm only levies a smaller tax rate. Hence, FDI does not lead to ecological dumping. With regard to welfare, we show that the impact on welfare is negative for the country hosting the national firm; positive for the country hosting the multinational firm, if FDI is unilateral; and ambiguous, for both countries, if FDI is bilateral.en_US
dc.language.isoengen_US
dc.publisherKiel Institute for the World Economy (IfW) Kielen_US
dc.relation.ispartofseriesKieler Arbeitspapiere 1013en_US
dc.subject.jelF12en_US
dc.subject.jelQ20en_US
dc.subject.jelF23en_US
dc.subject.jelF18en_US
dc.subject.ddc330en_US
dc.subject.keywordForeign direct investmenten_US
dc.subject.keywordenvironmental taxesen_US
dc.subject.keywordmultinational enterprisesen_US
dc.subject.keywordplant locationen_US
dc.subject.stwDirektinvestitionen_US
dc.subject.stwÖkosteueren_US
dc.subject.stwSteuerwettbewerben_US
dc.subject.stwUmweltpolitiken_US
dc.subject.stwStrategische Handelspolitiken_US
dc.subject.stwMultinationales Unternehmenen_US
dc.subject.stwStandortwahlen_US
dc.subject.stwZwei-Länder-Modellen_US
dc.subject.stwSpieltheorieen_US
dc.subject.stwTheorieen_US
dc.titleForeign Direct Investment and Environmental Taxesen_US
dc.typeWorking Paperen_US
dc.identifier.ppn322721628en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:Publikationen von Forscherinnen und Forschern des IfW
Kieler Arbeitspapiere, IfW

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