Market size and tax competition

• 成果类型: Article
• 署名作者: Ottaviano, GIP; van Ypersele, T
• 署名单位: University of Bologna; University of Namur
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2004.08.010
• 发表日期: 2005
• 页码: 25-46
• 关键词: Tax competition; TRADE; capital mobility; monopolistic competition; Market size

摘要

With international externalities, different country sizes, imperfect competition, and trade costs, tax competition for mobile firms is efficiency-enhancing with respect to the free market outcome. Under both scenarios, the resulting inefficiencies in international specialization and trade flows vanish when trade costs are low enough. Otherwise, only international tax coordination can implement the efficient spatial distribution of firms. (c) 2004 Elsevier B.V. All rights reserved.