Agglomeration, Migration and Tax Competition

Kurt Hafner

No 52, BERG Working Paper Series from Bamberg University, Bamberg Economic Research Group

Abstract: This paper focuses on tax competition and international migration in R&D sectors as agglomeration forces and trade restrictions are present. Economic integration forces industrialized countries to adapt their tax rates in order to keep their industrial status quo. Unlike the often discussed "race to the bottom" result, taxes are increased and the provision of public goods is maintained. It is also proven that taxes that redistribute between mobile and immobile labor lead to a tax burden that favors mobile labor. As integration continues, the cutback of factor mobility restrictions supports economic development in industrialized countries at the expense of structurally backward regions.

Keywords: Economic Geography; Agglomeration; Migration; Tax Competition (search for similar items in EconPapers)
JEL-codes: F12 F22 H73 R12 (search for similar items in EconPapers)
Date: 2005
References: View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Related works:
Journal Article: Tax Competition and Economic Integration (2015)
Working Paper: Agglomeration, Migration and Tax Competition (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:bamber:52

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