Regional Centrality and Tax Competition for FDI

Ian Wooton () and Julia Darby
Authors registered in the RePEc Author Service: Ben Ferrett

No 10099, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: 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 are 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.

Keywords: Corporate taxes; Devolution; Trade costs; Hub and spoke (search for similar items in EconPapers)
JEL-codes: F15 F23 H25 H73 (search for similar items in EconPapers)
Date: 2014-08
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
https://cepr.org/publications/DP10099 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Regional centrality and tax competition for FDI (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:10099

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP10099

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().