On the Intensity of International Subsidy Competition for FDI
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 eff...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2010-02-01
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| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/440.pdf
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| _version_ | 1829142663017791488 |
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| author | Tomáš HAVRÁNEK Zuzana IRŠOVÁ |
| author_facet | Tomáš HAVRÁNEK Zuzana IRŠOVÁ |
| author_sort | Tomáš HAVRÁNEK |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-12-14T20:35:17Z |
| format | Article |
| id | doaj.art-3cc5747170634eb2ac8106598d3edbe2 |
| institution | Directory Open Access Journal |
| issn | 1841-8678 1844-0029 |
| language | English |
| last_indexed | 2024-12-14T20:35:17Z |
| publishDate | 2010-02-01 |
| publisher | General Association of Economists from Romania |
| record_format | Article |
| series | Theoretical and Applied Economics |
| spelling | doaj.art-3cc5747170634eb2ac8106598d3edbe22022-12-21T22:48:24ZengGeneral Association of Economists from RomaniaTheoretical and Applied Economics1841-86781844-00292010-02-01XVII218418678On the Intensity of International Subsidy Competition for FDITomáš HAVRÁNEK0Zuzana IRŠOVÁ1 Charles University and Czech National Bank, Prague Charles University, Prague 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. http://store.ectap.ro/articole/440.pdf investment incentivesforeign direct investmentpanel datasubsidy competition |
| spellingShingle | Tomáš HAVRÁNEK Zuzana IRŠOVÁ On the Intensity of International Subsidy Competition for FDI Theoretical and Applied Economics investment incentives foreign direct investment panel data subsidy competition |
| title | On the Intensity of International Subsidy Competition for FDI |
| title_full | On the Intensity of International Subsidy Competition for FDI |
| title_fullStr | On the Intensity of International Subsidy Competition for FDI |
| title_full_unstemmed | On the Intensity of International Subsidy Competition for FDI |
| title_short | On the Intensity of International Subsidy Competition for FDI |
| title_sort | on the intensity of international subsidy competition for fdi |
| topic | investment incentives foreign direct investment panel data subsidy competition |
| url |
http://store.ectap.ro/articole/440.pdf
|
| work_keys_str_mv | AT tomashavranek ontheintensityofinternationalsubsidycompetitionforfdi AT zuzanairsova ontheintensityofinternationalsubsidycompetitionforfdi |