Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/72409 
Authors: 
Year of Publication: 
2003
Series/Report no.: 
Centre for Economic Research Working Paper Series No. WP03/12
Publisher: 
University College Dublin, Department of Economics, Dublin
Abstract: 
In this paper I examine dynamic tax competition in the context of an endogenous market structure. I therefore consider the tensions between proximity versus concentration, taxation and firm mobility while I also consider strategic interaction by governments (to induce multinationality) and asymmetric firms (for market share). The paper explores how strategic tax setting by rival governments may induce footloose firms to remain committed to initial location decisions, even when faced with adverse taxation regimes. In this instance, sunk costs resulting from the operation of additional plants may confer a first mover advantage on governments that can prevent relocation of firms.
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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