期刊名称：CORE Discussion Papers / Center for Operations Research and Econometrics (UCL), Louvain
出版年度：2008
卷号：1
出版社：Center for Operations Research and Econometrics (UCL), Louvain
摘要：In this paper, we provide an explanation of why privatization may attract foreign investors
interested in entering a regional market. Privatization turns the formerly-public firm into a less
aggressive competitor since profit- maximizing output is lower than the welfare-maximizing
one. The drawback is that social welfare generally decreases. We also investigate tax/subsidy
competition for FDI before and after privatization. We show that policy competition is
irrelevant in the presence of a public firm serving just its domestic market. By contrast,
following privatization, it endows the big country with an instrument which can be used either
to reduce the negative impact on welfare of an FDI-attracting privatization or to protect the
domestic industry from foreign competitors.
关键词：foreign direct investment, tax competition, public firm, privatization.
