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Policy competition for foreign direct investment between asymmetric countries

Bjorvatn, Kjetil; Eckel, Carsten
Working paper
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URI
http://hdl.handle.net/11250/162818
Date
2004-09
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  • Discussion papers (SAM) [640]
Abstract
The present paper analyses policy competition for foreign direct

investment between a larger and industrially more developed country

and a smaller and industrially less developed country. 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.
Publisher
Norwegian School of Economics and Business Administration. Department of Economics
Series
Discussion paper
2004:19

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