Subsidy competition for FDI: Fierce or weak?

Arbeitspapier

The objective of this paper is to empirically assess the recently introduced models of subsidy competition based on the classical oligopoly theories, using both cross-sectional and panel data. Three crucial scenarios (including coordination, weak competition, and fierce competition) are tested employing OLS, iteratively re-weighted least squares, fixed effects, and Blundell-Bond estimator. The results suggest that none of the scenarios can be strongly supportedalthough there is some weak support for cooperation, and thus that empirical evidence is not in accordance with the tested models. Further, it seems that by means of FDI incentives countries try to compensate foreign investors for high wages or low productivity of their citizens.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IES Working Paper ; No. 7/2009

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; International Investment; Long-term Capital Movements ; Multinational Firms; International Business ; Business Taxes and Subsidies including sales and value-added (VAT)
• Thema: Panel data ; Investment incentives ; Foreign direct investment ; Subsidy competition ; Subvention ; Investitionspolitik ; Standortwettbewerb ; Direktinvestition

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Havránek, Tomáš
• Ereignis: Veröffentlichung
• (wer): Charles University in Prague, Institute of Economic Studies (IES)
• (wo): Prague
• (wann): 2009

Weitere Informationen

• Handle: http://hdl.handle.net/10419/83454
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ