EconPapers    
Economics at your fingertips  
 

Taxation and Perfect Capital Mobility: the Effect of Competition among Countries to Attract Foreign Direct Investment

Mario Menegatti

Rivista italiana degli economisti, 2001, issue 1, 61-86

Abstract: The paper studies the equilibrium level of taxation in an AK growth model in the presence of perfect capital mobility. The analysis indicates that, in the absence of an agreement among countries, the desire to attract capital from abroad causes a generalised reduction in taxes with respect to the closed economy equilibrium. In the presence of homogeneity or weak heterogeneity, this reduction is shown to be disadvantageous for all economies while, if heterogeneity is strong, it is damaging for all but one.

Date: 2001
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.rivisteweb.it/download/article/10.1427/3689 (application/pdf)
https://www.rivisteweb.it/doi/10.1427/3689 (text/html)
Access to full text is restricted to subscribers

Related works:
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:mul:jqat1f:doi:10.1427/3689:y:2001:i:1:p:61-86

Access Statistics for this article

Rivista italiana degli economisti is currently edited by Giuliano Conti

More articles in Rivista italiana degli economisti from Società editrice il Mulino
Bibliographic data for series maintained by ().

 
Page updated 2025-03-19
Handle: RePEc:mul:jqat1f:doi:10.1427/3689:y:2001:i:1:p:61-86