Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/17712 
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dc.contributor.authorDe Santis, Roberto A.en
dc.contributor.authorStähler, Franken
dc.date.accessioned2009-01-28T14:58:59Z-
dc.date.available2009-01-28T14:58:59Z-
dc.date.issued2000-
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
dc.language.isoengen
dc.publisher|aKiel Institute of World Economics (IfW) |cKielen
dc.relation.ispartofseries|aKiel Working Paper |x1013en
dc.subject.jelF12en
dc.subject.jelQ20en
dc.subject.jelF23en
dc.subject.jelF18en
dc.subject.ddc330en
dc.subject.keywordForeign direct investmenten
dc.subject.keywordenvironmental taxesen
dc.subject.keywordmultinational enterprisesen
dc.subject.keywordplant locationen
dc.subject.stwDirektinvestitionen
dc.subject.stwÖkosteueren
dc.subject.stwSteuerwettbewerben
dc.subject.stwUmweltpolitiken
dc.subject.stwStrategische Handelspolitiken
dc.subject.stwMultinationales Unternehmenen
dc.subject.stwStandortwahlen
dc.subject.stwZwei-Länder-Modellen
dc.subject.stwSpieltheorieen
dc.subject.stwTheorieen
dc.titleForeign Direct Investment and Environmental Taxes-
dc.typeWorking Paperen
dc.identifier.ppn859673537en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:ifwkwp:1013en
dc.identifier.printppn322721628en

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