Andersen, Torben M.; Sørensen, Allan - 2007
wages and thus a loss of competitiveness. If the importance of the latter effect is reinforced by globalization, it is … taxation unambiguously worsens wage competitiveness, it does not follow that tax distortions or marginal costs of public funds … increase with product market integration. The reason is that gains from trade tend to reduce both. Moreover, non …