Keeping Mobile Firms at Home: The Role of Public Enterprise

Fjell Kenneth, John Heywood and Pal Debashis
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Fjell Kenneth: NHH Norwegian School of Economics, Bergen, Norway
Pal Debashis: University of Cincinnati, Cincinnati, USA

The B.E. Journal of Economic Analysis & Policy, 2024, vol. 24, issue 2, 659-671

Abstract: We show that the presence of a public firm can deter private firms from relocating to foreign countries in response to high domestic taxation. We also examine partially privatized public firms showing that the higher the exogenous domestic profit tax, the larger the public ownership share needs to be to deter private firm mobility. We illustrate that deterring mobility increases domestic welfare.

Keywords: international mobility; mixed oligopoly; partial privatization; domestic welfare (search for similar items in EconPapers)
JEL-codes: L13 L33 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1515/bejeap-2023-0350

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