On the Intensity of International Subsidy Competition for FDI

Theoretical and Applied Economics

卷:XVII

Tomáš HAVRÁNEK¹  Zuzana IRŠOVÁ² 

[1] Charles University and Czech National Bank, Prague;

[2] Charles University, Prague;

关键词: investment incentives;    foreign direct investment;    panel data;    subsidy competition;   

DOI  :  

来源: DOAJ

【 摘 要 】

The objective of this paper is to empirically assess therecently introduced models of subsidy competition based on theclassical oligopoly theories. Three crucial scenarios (coordination,weak competition, and fierce competition) are tested employingiteratively re-weighted least squares, fixed effects, and dynamicBlundell-Bond estimator on the data from the World CompetitivenessYearbook. The results suggest that none of the scenarios can bestrongly supported – although there is some weak support forcooperation –, and thus that empirical evidence is not in accordancewith the tested models. There is no evidence for a significantinternational competition for FDI. It seems that, however, by meansof FDI incentives, governments try to compensate foreign investorsfor high wages and low productivity of their countries’ labor force.

【 授权许可】

Unknown