Transport infrastructure investments and competition for FDI

Arbeitspapier

This paper studies how transport infrastructure investments affect a bidding war for a firm between two asymmetric countries within a region in a context of imperfect competition, where transport infrastructure investments play the role of a global public good, leading to a reduction in the unit trade cost between the two countries. A number of interesting results are derived from the model. In particular, transport infrastructure investments can intensify fiscal competition between the two countries. Surprisingly, this conventional wisdom seems to be confirmed by this paper for the first time. Welfare implications of the model are also examined.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: UCD Centre for Economic Research Working Paper Series ; No. WP17/18

Classification and Topics

• Classification: Wirtschaft ; International Investment; Long-term Capital Movements ; Multinational Firms; International Business ; Publicly Provided Goods: General
• Subject: transport infrastructure investments ; fiscal competition ; FDI ; imperfectly competitive market

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hynes, Kate ; Ma, Jie ; Yuan, Cheng
• Event: Veröffentlichung
• (who): University College Dublin, UCD School of Economics
• (where): Dublin
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/184818
• Last update: 10.03.2025, 11:44 AM CET