On the efficiency of fiscal competition for FDI when incumbent firms are foreign-owned
journal contributionposted on 2016-06-23, 12:30 authored by Ben FerrettBen Ferrett, Andreas Hoefele
We show that the international distribution of ownership of the incumbent firms within a host region matters for the efficiency of the fiscal competition between the region's constituent countries for a new FDI project. If incumbent firms are owned entirely within the host region, then the new plant's location will be efficient. However, when incumbent firms are owned outside the host region and the degree of such extra-regional ownership varies substantially across the competing host countries-as it does in the data-then inefficient locations might win contests for new plants.
- Business and Economics
Published inEconomics Bulletin
Pages694 - 701
CitationFERRETT, B. and HOEFELE, A., 2015. On the efficiency of fiscal competition for FDI when incumbent firms are foreign-owned. Economics Bulletin, 35 (1), pp. 694 - 701
- VoR (Version of Record)
Publisher statementThis work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/
NotesThis article was published in the journal, Economics Bulletin.