Arbeitspapier

Foreign direct investment and the welfare effects of cost harmonization

Foreign direct investment (FDI) gives foreign firms access to local labor and inputs, thereby harmonizing costs between foreign and domestic firms relative to exports. This paper investigates the welfare effects of such cost harmonization in strategic environments, finding that when the number of home firms is sufficiently close to the number of foreign firms, FDI reduces home welfare, whether FDI raises or decreases foreign firms' marginal costs. An implication is that under the same conditions, a country is harmed by tax harmonization on products that bring foreign taxes on product it imports inline with domestic ones for products.

Sprache
Englisch

Erschienen in
Series: ISER Discussion Paper ; No. 741

Klassifikation
Wirtschaft
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
International Investment; Long-term Capital Movements
Thema
foreign investment
Cournot competition
welfare

Ereignis
Geistige Schöpfung
(wer)
Creane, Anthony
Miyagiwa, Kaz
Ereignis
Veröffentlichung
(wer)
Osaka University, Institute of Social and Economic Research (ISER)
(wo)
Osaka
(wann)
2009

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Creane, Anthony
  • Miyagiwa, Kaz
  • Osaka University, Institute of Social and Economic Research (ISER)

Entstanden

  • 2009

Ähnliche Objekte (12)