Competing back for foreign direct investment

Weifeng Zhai

Economic Modelling, 2014, vol. 39, issue C, 146-150

Abstract: This paper studies policy competition for foreign direct investment between host and home countries. Three results have been obtained. First, policy competition does not change the attractiveness of any country as a location for investment. Second, as a result, policy competition does not change regional welfare. Lastly, the equilibrium policy could be either a subsidy or a tax.

Keywords: Foreign direct investment; Policy competition; Reshoring; Labor cost; Welfare (search for similar items in EconPapers)
JEL-codes: F12 F23 L12 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:39:y:2014:i:c:p:146-150

DOI: 10.1016/j.econmod.2014.02.034

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