International Competition for Foreign Multinational Investment,

Preprint OPEN
Jan I. Haaland; Ian Wooton;
(1998)
  • Subject: multinationals; foreign direct investment; location
    • jel: jel:F12 | jel:F23

We examine the economic justification for providing investment subsidies to foreign-owned multinationals. These provide employment opportunities and generate demand for domestic intermediate inputs, produced by domestic workers with increasing returns to scale. Offering... View more
  • References (7)

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    Haufler, Andreas and Ian Wooton (1998), “Country Size and Tax Competition for Foreign Direct Investment,” Journal of Public Economics, forthcoming.

    Markusen, James R. and Anthony J. Venables (1998), “Foreign Direct Investment as a Catalyst for Industrial Development,” Paper presented at the Nordic International Trade Seminar, Stockholm, March.

    Venables, Anthony J. (1996), “Equilibrium Locations of Vertically Linked Industries”, International Economic Review, vol. 37, no. 2, pp 341-359. 28

    Figure 4. Equilibria with Competition in Subsidies sf

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