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• W3122805912 abstract "Abstract We analyse the tax/subsidy competition between two potential host governments to attract the plants of firms in a duopolistic industry. While competition between identical countries for a monopolist's investment is known to result in subsidy inflation, two firms can be taxed in equilibrium with the host countries appropriating the entire social surplus generated within the industry, despite explicit non‐cooperation between governments. Trade costs mean that the firms prefer dispersed to co‐located production, creating these taxation opportunities for the host countries. We determine the country‐size asymmetry that changes the nature of the equilibrium, inducing concentration of production in the larger country." @default.
• W3122805912 created "2021-02-01" @default.
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• W3122805912 date "2010-07-16" @default.
• W3122805912 modified "2023-10-03" @default.
• W3122805912 title "Competing for a duopoly: international trade and tax competition" @default.
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• W3122805912 doi "https://doi.org/10.1111/j.1540-5982.2010.01594.x" @default.
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