Appendix to “Subsidies for FDI: Implications from a Model with Heterogeneous Firms”
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منابع مشابه
Subsidies for FDI: Implications from a Model with Heterogeneous Firms∗
This paper analyzes the welfare effects of subsidies to attract multinational corporations when firms are heterogeneous in their productivity levels. I show that the use of a small subsidy raises welfare in the FDI host country, with the consumption gains from attracting more multinationals exceeding the direct cost of funding the subsidy program through a tax on labor income. This welfare gain...
متن کاملسرمایه گذاری مستقم خارجی و فرضیه پناهگاه آلودگی
Environmental problems have become a critical global issue, especially the global warming issue resulting from increased greenhouse gases over the past few decades. Nevertheless, due to the importance of foreign direct investment (FDI) for some countries, they use their environment as a comparative advantage to attract FDI. In this study, by using a theoretical model, we review the pollution ha...
متن کاملTime Zones and FDI with Heterogeneous Firms
Based on Helpman et al. (2004) we propose a simple two-country (Home and Foreign) model with heterogeneous firms to capture the role of FDI via utilizing time zone differences. Two countries are located in different time zones and there is no overlap in daily working hours. It will be shown that productivities of the firms undertaking FDI are higher than the productivities of non-FDI f i r m s ...
متن کاملModelling the Heterogeneous Price Setting Behavior of Firms (DSGE Approach)
Despite the empirical evidence of the difference in the degree of price stickiness of goods and services, in the new standard Keynesian models, the same price stickiness is considered for all firms producing intermediate goods. In recent years, a new generation of pricing models has been introduced to simulate the heterogeneous price setting behavior in which, unlike standard pricing models, th...
متن کاملThe Normative Evaluation and Social Choice of Contemporary Economic Systems
It is often observed that in order to serve the domestic market, foreign firms not only export but also control domestic firms through foreign direct investment (FDI). This paper examines the effects of tariffs, production subsidies, and foreign ownership regulation on prices, outputs, profits, and welfare when both exports and FDI coexist. Cross-border ownership on the basis of both financial ...
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تاریخ انتشار 2012