Foreign Direct Investment and Industrial Structure in Developing Countries

Xiangkang Yin

No 1996.12, Working Papers from School of Economics, La Trobe University

Abstract: Within a framework of differentiated oligopolies, this paper studies how the tax incentive of a developing country on foreign direct investment (FDI) affects the structure of a specific domestic industry. Benefits from the tax incentive are analysed based upon the effects of the tax reduction on host and foreign sectors' prices, outputs, and entry and exit of firms in the industry.

Keywords: Industrial Structure; Oligopolies; Taxation; Foreign Investments (search for similar items in EconPapers)
Pages: 19 pages
Date: 1996
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