In China, offering inexpensive industrial land is a major means for local governments to
participate in interregional subsidy competition, which caused regional industrial land price …

Why do municipalities set business property taxes higher than the costs of business services
when, in competitive markets, this would result in the inefficient provision of public goods …

When multinational enterprises (MNEs) separate the geographical location of affiliates, they
can shift profits between the affiliates by manipulating intra-firm prices of inputs. We show …

Foreign direct investment (FDI) is a major factor in the globalization scenario. However,
contrary to the core pro-market tenets of the economic school supporting globalization, the …

We examine a two‐period regional model with evolving economic geography, potentially
creating incentives for firm relocation between periods. We argue that tax competition makes …

This paper studies interregional competition for a multinational firm when the bidding is
decided by the median voter. We model the competition as an auction under full information …

We study the tax/subsidy competition between two countries to attract the FDI projects of two
firms. We assume that governments lack the capacity to target every potential inward …

When a region successfully attracts a firm by offering subsidies, the firm often commits itself
to performance targets in terms of employment. In this paper, we interpret these firm‐specific …

We study the tax/subsidy competition between two countries to attract the FDI projects of two
firms. We assume that governments lack the capacity to target every potential inward …

It can be said that local governments determine economic development because according
to ICMA's Economic Development Survey (EDS), 67 percent of local officials agree that …