Subsidies for FDI: Implications from a model with heterogeneous firms

Subsidies for FDI: Implications from a model with heterogeneous firms

This paper analyzes the welfare effects of subsidies to attract multinational corporations when firms are heterogeneous in their productivity levels. I show that the use of a small subsidy raises welfare in the FDI host country, with the consumption gains from attracting more multinationals exceedin...

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Bibliographic Details
Main Author: CHOR, Davin
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2009
Subjects:
FDI subsidies
heterogeneous firms
fixed versus variable cost subsidies
import subsidies
Industrial Organization
Online Access:https://ink.library.smu.edu.sg/soe_research/1216
https://ink.library.smu.edu.sg/context/soe_research/article/2215/viewcontent/fdisubsidyshort.pdf
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Institution: Singapore Management University
Language: English

Internet

https://ink.library.smu.edu.sg/soe_research/1216
https://ink.library.smu.edu.sg/context/soe_research/article/2215/viewcontent/fdisubsidyshort.pdf

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