Policy competition for foreign direct investment between asymmetric countries

Kjetil Bjorvatn and Carsten Eckel

Munich Reprints in Economics from University of Munich, Department of Economics

Abstract: The present paper analyses policy competition for foreign direct investment between countries of different size and different market structure. We demonstrate how policy competition affects the location decision of the foreign investor and derive welfare implications. The key variables in our analysis are intra-regional trade costs, differences in market size, and minimum wages.

Date: 2006
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Citations: View citations in EconPapers (81)

Published in European Economic Review 7 50(2006): pp. 1891-1907

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Persistent link: https://EconPapers.repec.org/RePEc:lmu:muenar:20270

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