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Fiscal Competition in Developing Countries : A Survey of the Theoretical and Empirical Literature

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dc.contributor.authorMadies, Thierry
dc.contributor.authorDethier, Jean-Jacques
dc.date.accessioned2012-03-19T18:39:58Z
dc.date.available2012-03-19T18:39:58Z
dc.date.issued2010-05-01
dc.description.abstractThe last two decades have witnessed a sharp increase in foreign direct investment (FDI) flows and increased competition among developing countries to attract FDI, resulting in higher investment incentives offered by host governments and removal of restrictions on operations of foreign firms in their countries. Fiscal competition between governments can take the form of business tax rebates, productivity-enhancing public infrastructure or investment incentives such as tax holidays, accelerated depreciation allowances or loss carry-forward for income tax purposes. It can take place between governments of different countries or between local governments within the same country. This paper surveys the recent theoretical and empirical economic literature on decentralization which attempts to answer three questions. First, does theoretical literature on fiscal competition and "bidding races" contribute to a better understanding of such phenomenon in developing countries? Second, are FDI inflows in developing countries sensitive to fiscal incentives and is there empirical evidence of strategic behavior from the part of developing countries in order to attract FDI? Third, what evidence is there about fiscal competition among local governments in developing countries?en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100517095203
dc.identifier.doi10.1596/1813-9450-5311
dc.identifier.urihttps://hdl.handle.net/10986/3796
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5311
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectADDED TAX
dc.subjectAGENCY PROBLEM
dc.subjectASYMMETRIC INFORMATION
dc.subjectAUCTION
dc.subjectAUCTIONS
dc.subjectBAILOUT
dc.subjectBID
dc.subjectBIDS
dc.subjectBOND
dc.subjectBUDGET CONSTRAINT
dc.subjectBUDGET CONSTRAINTS
dc.subjectBUSINESS OPPORTUNITIES
dc.subjectBUSINESS TAX
dc.subjectBUSINESS TAXES
dc.subjectCAPITAL FLIGHT
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL FORMATION
dc.subjectCAPITAL IMPORTER
dc.subjectCENTRAL BANK
dc.subjectCENTRAL GOVERNMENT
dc.subjectCENTRAL GOVERNMENTS
dc.subjectCITIES
dc.subjectCOASTAL PROVINCES
dc.subjectCOMMITMENT DEVICE
dc.subjectCOMMON MARKET
dc.subjectCOMPETITIVE MARKETS
dc.subjectCORPORATE INCOME TAX
dc.subjectCORPORATE TAX
dc.subjectCORPORATE TAX RATE
dc.subjectCORPORATE TAX RATES
dc.subjectCORPORATE TAXES
dc.subjectCOST OF CAPITAL
dc.subjectCOUNTRY MARKET
dc.subjectCOUNTRY RISK
dc.subjectCURRENT EXPENDITURES
dc.subjectDECENTRALIZATION
dc.subjectDEMOCRACY
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPING COUNTRY
dc.subjectDEVELOPING ECONOMIES
dc.subjectDIFFERENTIALS
dc.subjectDIRECT PAYMENTS
dc.subjectDISTRICTS
dc.subjectDOMESTIC PRICES
dc.subjectDOUBLE TAXATION
dc.subjectECONOMIC ANALYSIS
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC INTEGRATION
dc.subjectEFFECTIVE TAX RATES
dc.subjectENTERPRISE OPERATIONS
dc.subjectEQUALIZATION
dc.subjectEQUIPMENTS
dc.subjectEQUITY INVESTMENT
dc.subjectEXCESS SUPPLY
dc.subjectEXPENDITURE
dc.subjectEXPENDITURE NEEDS
dc.subjectEXPENDITURES ON INFRASTRUCTURE
dc.subjectEXPORTER
dc.subjectEXTERNALITIES
dc.subjectFEDERAL SUBSIDIES
dc.subjectFEDERAL TRANSFER
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL STUDIES
dc.subjectFISCAL AUTONOMY
dc.subjectFISCAL DECENTRALIZATION
dc.subjectFISCAL FEDERALISM
dc.subjectFISCAL POLICY
dc.subjectFISCAL TRANSFERS
dc.subjectFIXED CAPITAL
dc.subjectFIXED INVESTMENT
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFOREIGN FIRMS
dc.subjectFOREIGN INVESTMENT
dc.subjectFOREIGN INVESTORS
dc.subjectFOREIGN MARKET
dc.subjectFOREIGN TAX CREDITS
dc.subjectFREE TRADE
dc.subjectFREE TRADE AGREEMENT
dc.subjectGLOBALIZATION
dc.subjectGOVERNMENT BORROWING
dc.subjectGOVERNMENT POLICIES
dc.subjectGOVERNMENT REVENUE
dc.subjectHARD BUDGET CONSTRAINTS
dc.subjectHARMONIZATION
dc.subjectHOME COUNTRY
dc.subjectHOST COUNTRIES
dc.subjectHOST COUNTRY
dc.subjectHOST GOVERNMENTS
dc.subjectHUMAN CAPITAL
dc.subjectIMPLICIT TAX
dc.subjectINCOME TAX
dc.subjectINDUSTRIAL COUNTRIES
dc.subjectINFORMATION ASYMMETRIES
dc.subjectINFRASTRUCTURE DEVELOPMENT
dc.subjectINFRASTRUCTURE INVESTMENT
dc.subjectINSURANCE
dc.subjectINSURANCE COMPANIES
dc.subjectINTANGIBLE
dc.subjectINTANGIBLE ASSETS
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL CAPITAL
dc.subjectINTERNATIONAL CAPITAL MOBILITY
dc.subjectINTERNATIONAL INVESTORS
dc.subjectINTERNATIONAL TRADE
dc.subjectINVESTING
dc.subjectINVESTMENT BANK
dc.subjectINVESTMENT CLIMATE
dc.subjectINVESTMENT DECISION
dc.subjectINVESTMENT DECISIONS
dc.subjectINVESTMENT PROJECTS
dc.subjectJURISDICTION
dc.subjectJURISDICTIONS
dc.subjectLEVEL OF GOVERNMENT
dc.subjectLOCAL AUTONOMY
dc.subjectLOCAL BUSINESS
dc.subjectLOCAL GOVERNMENT
dc.subjectLOCAL GOVERNMENTS
dc.subjectLOCAL PUBLIC GOOD
dc.subjectMARGINAL COST
dc.subjectMARKET CONDITION
dc.subjectMARKET SIZE
dc.subjectMAYOR
dc.subjectMUNICIPALITIES
dc.subjectMUNICIPALITY
dc.subjectNATURAL RESOURCE
dc.subjectNET CAPITAL
dc.subjectOPPORTUNISTIC BEHAVIOR
dc.subjectOPPORTUNITY COST
dc.subjectOUTPUT
dc.subjectPERSONAL INCOME
dc.subjectPOLICY CHOICES
dc.subjectPOLICY DECISIONS
dc.subjectPOLITICAL ACCOUNTABILITY
dc.subjectPOLITICAL STABILITY
dc.subjectPORTFOLIO
dc.subjectPOSITIVE EXTERNALITIES
dc.subjectPOTENTIAL INVESTORS
dc.subjectPRIVATE CAPITAL
dc.subjectPRIVATE LOANS
dc.subjectPRIVATE SECTOR
dc.subjectPROPERTY TAX
dc.subjectPROVINCE
dc.subjectPROVINCES
dc.subjectPROVINCIAL GOVERNMENT
dc.subjectPROVINCIAL GOVERNMENTS
dc.subjectPROVINCIAL LEVEL
dc.subjectPROVINCIAL TAX
dc.subjectPROVINCIAL TAXES
dc.subjectPROVISIONS
dc.subjectPUBLIC
dc.subjectPUBLIC CONSUMPTION
dc.subjectPUBLIC ECONOMICS
dc.subjectPUBLIC EXPENDITURE
dc.subjectPUBLIC EXPENDITURES
dc.subjectPUBLIC FINANCE
dc.subjectPUBLIC FUNDS
dc.subjectPUBLIC GOODS
dc.subjectPUBLIC INFORMATION
dc.subjectPUBLIC INFRASTRUCTURE
dc.subjectPUBLIC INVESTMENT
dc.subjectPUBLIC LOANS
dc.subjectPUBLIC POLICY
dc.subjectPUBLIC SECTOR
dc.subjectPUBLIC SPENDING
dc.subjectREGIONAL INTEGRATION
dc.subjectREGIONAL TRADE
dc.subjectRESOURCE ALLOCATION
dc.subjectRETURN
dc.subjectRETURNS
dc.subjectREVENUE SHARING
dc.subjectSMALL COUNTRIES
dc.subjectSOCIAL VALUE
dc.subjectSOFT BUDGET CONSTRAINT
dc.subjectSOFT BUDGET CONSTRAINTS
dc.subjectSUB-NATIONAL
dc.subjectSUB-NATIONAL GOVERNMENT
dc.subjectSUBNATIONAL
dc.subjectSUBNATIONAL GOVERNMENT
dc.subjectSUBNATIONAL GOVERNMENTS
dc.subjectTAX
dc.subjectTAX AUTONOMY
dc.subjectTAX BASE
dc.subjectTAX BASES
dc.subjectTAX BREAKS
dc.subjectTAX BURDEN
dc.subjectTAX CHANGES
dc.subjectTAX COMPETITION
dc.subjectTAX CONCESSIONS
dc.subjectTAX COORDINATION
dc.subjectTAX CREDIT
dc.subjectTAX CREDITS
dc.subjectTAX DIFFERENTIALS
dc.subjectTAX INCENTIVES
dc.subjectTAX PAYMENTS
dc.subjectTAX PLANNING
dc.subjectTAX POLICIES
dc.subjectTAX POLICY
dc.subjectTAX PREFERENCES
dc.subjectTAX PROVISION
dc.subjectTAX PURPOSES
dc.subjectTAX RATE
dc.subjectTAX RATES
dc.subjectTAX REBATES
dc.subjectTAX REDUCTION
dc.subjectTAX REGIME
dc.subjectTAX REGIMES
dc.subjectTAX REVENUE
dc.subjectTAX REVENUE SHARING
dc.subjectTAX REVENUES
dc.subjectTAX SPARING
dc.subjectTAX TREATMENT
dc.subjectTAX TREATY
dc.subjectTAXATION
dc.subjectTOTAL GOVERNMENT EXPENDITURE
dc.subjectTRANSACTION
dc.subjectTRANSACTION COSTS
dc.subjectTRANSITION COUNTRIES
dc.subjectTREATIES
dc.subjectTREATY
dc.subjectURBAN ECONOMICS
dc.subjectUSE TAX
dc.subjectUTILITIES
dc.subjectVALUATION
dc.subjectWORLD TRADE
dc.titleFiscal Competition in Developing Countries : A Survey of the Theoretical and Empirical Literatureen
dspace.entity.typePublication
okr.crossref.titleFiscal Competition In Developing Countries : A Survey Of The Theoretical And Empirical Literature
okr.date.doiregistration2025-04-10T11:50:01.746939Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100517095203
okr.guid660651468148759194
okr.identifier.doi10.1596/1813-9450-5311
okr.identifier.externaldocumentum000158349_20100517095203
okr.identifier.internaldocumentum12267883
okr.identifier.reportWPS5311
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2010/05/17/000158349_20100517095203/Rendered/PDF/WPS5311.pdfen
okr.region.administrativeWorld
okr.region.administrativeWorld
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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