Tariff jumping foreign investment and capital taxation

• 成果类型: Article
• 署名作者: Dehejia, VH; Weichenrieder, AJ
• 署名单位: University of Munich; Carleton University; Carleton University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/S0022-1996(00)00053-2
• 发表日期: 2001
• 页码: 223-230
• 关键词: Capital taxation; tariff jumping; Foreign direct investment

摘要

This paper reconsiders the welfare effects of 'tariff jumping' direct investment if mobile capital is subjected to taxation. In contrast to the conventional wisdom, the receiving country may in this case gain from the incremental inflow of capital, as this diverts tax revenues from the rest of the world. In the case of perfect capital mobility, this possibility becomes a certainty. Our argument provides one rationale for a small country to levy a distorting tariff in a second best world in which capital taxes already exist. (C) 2001 Elsevier Science B.V. All rights reserved.