The aim of this paper is to make a first step towards studying the role of social expenditure and its interaction with corporate taxation in determining the destination of foreign direct investment (FDI) flows. Using panel data for 18 OECD countries and measuring the extent of social welfare policies by the (public social expenditure)/GDP ratio, we find strong support for the conjecture that re...

The aim of this paper is to make a first step towards studying the role of social expenditure and its interaction with corporate taxation in determining the destination of foreign direct investment (FDI) flows. Using panel data for 18 OECD countries and measuring the extent of social welfare policies by the (public social expenditure)/GDP ratio, we find strong support for the conjecture that re...

This paper tries to explain the declining level of public investment in OECD countries by taking account of political and economic driving forces. The theoretical framework hints to the relevance of a number of demand and supply factors – ranging from the yield of public investment to institutions like the EU deficit limits of the Stability and Growth Pact. The econometric results indicate that...

This paper reexamines the work of Kempf and Rota-Graziosi (J. Pub. Econ. 94: 768-776, 2010), which shows that leadership by the small region is the risk dominant equilibrium under the endogenous timing game. They obtain this result in a model where the asymmetry among countries translates into different gradients of the demand for capital but identical vertical intercept. In this note, we simpl...

abstract the theory of international tax competition suggests that governments attempt to attract mobile capital bases by undercutting the foreign capital tax rate. an analysis of the role that state capacity plays in tax policymaking under international pressures is, however, missing. the central contribution of our study is to highlight the importance of the interaction between state capacity...

This paper demonstrates why an increased quantity of funding as claimed by big health lenders is not effective to achieve Millennium Development Goal 6, stopping the spread of HIV by 2015. An alternative funding mechanism linking the disbursement of matching grants with a minimum provision level is suggested. In order to study the impact of conditional subsidies on the efficiency of internation...

It has been argued in light of concessions made at Bonn and Marrakech, the market for Clean Development Mechanism (CDM) projects will be small compared to greenhouse gas (GHG) emissions in developing countries and that it will be characterised by low demand and low prices. This paper examines these arguments in the context of India and the likely nature and extent of India’s involvement in CDM ...

That tax haven policies contribute to favorable economic growth in tax haven countries is commonly accepted. There is, however, minimal empirical evidence to substantiate this assertation and empirical investigations are subject to endogeneity bias. Using a sample of 155 countries from 1982 to 2003, we find that the standard tax haven variable is endogenous to the error term in a typical growth...

National labour market institutions interact across national boundaries when product markets are global. Labour market policies can thus entail spill-overs, which suggest that there are benefits from international policy coordination. This paper studies the effects of wage subsidies in an international duopoly model with unionized labour markets. The authors document both positive and negative ...