Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/92571
Authors: 
Miyagiwa, Kaz
Ohno, Yuka
Year of Publication: 
2008
Series/Report no.: 
ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 717
Abstract: 
Host country governments often grant investment incentives to foreign firms locating in their territories. We show that such preferential treatment of foreign firms can facilitate transfer of foreign technology, induce entry by the local firm, and increase host country welfare. However, this pro-competitive result occurs when preferential treatment is granted for a limited time; i.e., it takes the form of tax holidays, and is absent under permanent tax concessions.
Subjects: 
Tax holidays
Free trade zones
Foreign direct investment
Technology transfer
Multinational firms
JEL: 
F1
O3
Document Type: 
Working Paper

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