Policy competition for foreign direct investment between asymmetric countries |
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| Authors: | Kjetil Bjorvatn Carsten Eckel |
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| Affiliation: | a Norwegian School of Economics and Business Administration, NHH, Department of Economics, Helleveien 30, N-5045 Bergen, Norway
b University of Göttingen, Department of Economics, D-37073 Göttingen, Germany |
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| 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. |
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| Keywords: | F12 F23 L13 O33 |
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