EconStor >
Georg-August-Universität Göttingen >
cege - Centrum für Europa-, Governance- und Entwicklungsforschung, Universität Göttingen >
cege-Diskussionspapiere, Universität Göttingen >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/31990
  
Title:Regional tax coordination and foreign direct investment PDF Logo
Authors:Haufler, Andreas
Wooton, Ian
Issue Date:2001
Series/Report no.:CeGE Discussion Paper 14
Abstract:The paper analyzes the effects of a regionally coordinated profit tax in a model with three active countries, one of which is not part of the union, and a globally mobile firm. We show that regional tax coordination can lead to two types of welfare gains. First, for investments that would take place in the region in the absence of coordination, this measure can transfer location rents from the firm to the union. Second, by internalizing all of the union’s benefits from foreign direct investment, a coordinated policy attracts more investment than when member states act in isolation. Consequently, tax levels may rise or fall under regional coordination.
Subjects:tax competition
regional coordination
international investment
JEL:F15
F23
H73
H87
Document Type:Working Paper
Appears in Collections:cege-Diskussionspapiere, Universität Göttingen

Files in This Item:
File Description SizeFormat
500240345.pdf259.25 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/31990

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.