Foreign Investment Incentives and International Cross-Hauling of Capital

Harry Huizinga

Canadian Journal of Economics, 1991, vol. 24, issue 3, 710-16

Abstract: This note shows how international tax competition can give rise to special tax breaks for foreign investment. Discriminatory tax treatment of outside investment can give rise to socially harmful cross-flows of international investment. Paradoxically, an increase in the costs associated with foreign investment can increase welfare.

Date: 1991
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Working Paper: Foreign investment incentives and international cross-hauling of capital (1991)
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