AMERIGHI, Oscar; DE FEO, Giuseppe - Center for Operations Research and Econometrics (CORE), … - 2008
In this paper, we provide an explanation of why privatization may attract foreign investors interested in entering a … tax/subsidy competition for FDI before and after privatization. We show that policy competition is irrelevant in the … presence of a public firm serving just its domestic market. By contrast, following privatization, it endows the big country …