Reference : Does tax competition increase disparity among jurisdictions?
E-prints/Working papers : Already available on another site
Business & economic sciences : Economic systems & public economics
http://hdl.handle.net/10993/23039
Does tax competition increase disparity among jurisdictions?
English
Han, Yutao mailto []
Pieretti, Patrice mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >]
Zou, Benteng mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >]
2015
No
[en] interjurisdictional competition ; productivity catch-up ; size asymmetry
[en] This paper investigates whether a less-developed economy can catch up with
a more developed one when they compete for foreign direct investments. The
main message of the paper is that jurisdictional competition can enable the lagging
country to catch up if capital mobility is sufficiently high and the productivity gap
is not too large. Further, we show that size asymmetry reinforces (weakens) the
productivity catch-up resulting from interjurisdictional competition when the lagging
economy is small (large). Finally, we demonstrate that the development gap
widens when capital becomes less mobile, which is at odds with previous findings.
http://hdl.handle.net/10993/23039
http://wwwen.uni.lu/research/fdef/crea/publications2/discussion_papers

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