Policy competition for foreign direct investment between asymmetric countries

Bjorvatn, Kjetil; Eckel, Carsten (2006): Policy competition for foreign direct investment between asymmetric countries. In: European Economic Review, Vol. 50, No. 7: pp. 1891-1907

Abstract

The present paper analyses policy competition for foreign direct investment between countries of different size and different market structure. We demonstrate how policy competition affects the location decision of the foreign investor and derive welfare implications. The key variables in our analysis are intra-regional trade costs, differences in market size, and minimum wages.

• Item Type: Journal article
• Faculties: Economics; Economics > Chairs > Seminar for International Trade Theory and Trade Policy
• Subjects: 300 Social sciences > 330 Economics
• Language: English