RSUE accepted MS 2014.pdf (730.79 kB)
Regional centrality and tax competition for FDI
journal contributionposted on 2016-12-07, 14:08 authored by Julia Darby, Ben FerrettBen Ferrett, Ian Wooton
We examine a trade model where three countries compete for an exogenous number of firms. In our hub- and- spoke framework, one country is the hub through which all trade with and between spokes takes place. We establish the distribution of industrial activity in the absence of taxes and compare it to the equilibrium when countries compete to attract firms. Even when all countries have the same size, the centrality of the hub sets it apart. We determine how this trading pattern matters, comparing it to a structure with direct trade between all countries. The implications of international tax competition are also examined.
- Business and Economics
Published inRegional Science and Urban Economics
Pages84 - 92
CitationDARBY, J., FERRETT, B. and WOOTON, I., 2014. Regional centrality and tax competition for FDI. Regional Science and Urban Economics, 49, pp.84-92.
- AM (Accepted Manuscript)
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/