Unionisation Triggers Tax Incentives to Attract Foreign Direct Investment
نویسندگان
چکیده
منابع مشابه
Unionisation Triggers Tax Incentives to Attract Foreign Direct Investment
This paper analyses tax competition between a unionised and a non-unionised country for the location of an outside firm. We show that unionisation offers an extra incentive for the government to attract a foreign competitor to a concentrated domestic market, in order to affect the behaviour of the domestic union. This results in the unionised country’s government offering a tax discount (or a s...
متن کاملUnionization triggers tax incentives to attract FDI
This paper examines tax competition between a unionized and a nonunionized country for the location of an outside firm. We show that unionization offers an extra incentive for the government to attract a foreign competitor to a concentrated domestic market, in order to limit the power of the domestic union. This results in the unionized country’s government offering a tax discount (or a subsidy...
متن کاملRegional Tax Coordination and Foreign Direct Investment Regional Tax Coordination and Foreign Direct Investment *
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 ...
متن کاملThe Economics of Foreign Direct Investment Incentives
This paper suggests that the use of investment incentives focusing exclusively on foreign firms, although motivated in some cases from a theoretical point of view, is generally not an efficient way to raise national welfare. The main reason is that the strongest theoretical motive for financial subsidies to inward FDI spillovers of foreign technology and skills to local industry is not an a...
متن کاملTax Effects on Foreign Direct Investment
Virtually all governments are keen to attract foreign direct investment (FDI). It can generate new jobs, bring in new technologies and, more generally, promote growth and employment. The resulting net increase in domestic income is shared with government through taxation of wages and profits of foreign-owned companies, and possibly other taxes on business (e.g. property tax). FDI may also posit...
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ژورنال
عنوان ژورنال: The Economic Journal
سال: 2011
ISSN: 0013-0133,1468-0297
DOI: 10.1111/j.1468-0297.2010.02405.x