Item request has been placed! ×
Item request cannot be made. ×
loading  Processing Request

On the Intensity of International Subsidy Competition for FDI

Item request has been placed! ×
Item request cannot be made. ×
loading   Processing Request
  • Additional Information
    • Publication Information:
      General Association of Economists from Romania, 2010.
    • Publication Date:
    • Collection:
      LCC:Economic theory. Demography
      LCC:Economics as a science
    • Abstract:
      The objective of this paper is to empirically assess the recently introduced models of subsidy competition based on the classical oligopoly theories. Three crucial scenarios (coordination, weak competition, and fierce competition) are tested employing iteratively re-weighted least squares, fixed effects, and dynamic Blundell-Bond estimator on the data from the World Competitiveness Yearbook. The results suggest that none of the scenarios can be strongly supported – although there is some weak support for cooperation –, and thus that empirical evidence is not in accordance with the tested models. There is no evidence for a significant international competition for FDI. It seems that, however, by means of FDI incentives, governments try to compensate foreign investors for high wages and low productivity of their countries’ labor force.
    • File Description:
      electronic resource
    • ISSN:
    • Relation:;
    • Accession Number: