Global corporations and local politics: income redistribution vs. FDI subsidies
Global corporations and local politics: income redistribution vs. FDI subsidies
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DOI:
10.1016/j.jdeveco.2003.06.004
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发表时间:
2004-08-01
影响因子:
5
通讯作者:
Janeba, E
中科院分区:
文献类型:
--
作者:
Janeba, E
Income inequality has been used empirically to explain the mixed performance of developing countries in attracting FDI. This paper sets up a theoretical model that links the skewness of the income distribution to a host government's willingness to subsidize FDI. Large skewness makes government subsidies less likely because the median income person prefers redistribution. Little skewness, however, does not guarantee FDI. In addition, host governments may switch from positive to no subsidies if a shift in economic variables changes how the policymaker trades off the FDI benefits and income redistribution, thereby offering an alternative to the conventional hold-up story. (C) 2004 Elsevier B.V. All rights reserved.