EB with Andreas 2015 published version with append.pdf (1.03 MB)
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On the efficiency of fiscal competition for FDI when incumbent firms are foreign-owned

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journal contribution
posted on 23.06.2016, 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.

History

School

  • Business and Economics

Department

  • Economics

Published in

Economics Bulletin

Volume

35

Issue

1

Pages

694 - 701

Citation

FERRETT, 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

Publisher

Economics Bulletin

Version

VoR (Version of Record)

Publisher statement

This 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/

Publication date

2015

Notes

This article was published in the journal, Economics Bulletin.

eISSN

1545-2921

Language

en

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Keywords

Exports