Competing back for foreign direct investment

This paper studies policy competition for foreign direct investment between host and home countries. Three results have been obtained. First, policy competition does not change the attractiveness of any country as a location for investment. Second, as a result, policy competition does not change regional welfare. Lastly, the equilibrium policy could be either a subsidy or a tax.

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Year of publication:	2014
Authors:	Zhai, Weifeng
Published in:	Economic Modelling. - Elsevier, ISSN 0264-9993. - Vol. 39.2014, C, p. 146-150
Publisher:	Elsevier
Subject:	Foreign direct investment \| Policy competition \| Reshoring \| Labor cost \| Welfare

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Type of publication:	Article
Classification:	F12 - Models of Trade with Imperfect Competition and Scale Economies ; F23 - Multinational Firms; International Business ; L12 - Monopoly; Monopolization Strategies
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010782000