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

Madies, Thierry; Dethier, Jean-Jacques

dc.creator	Madies, Thierry
dc.creator	Dethier, Jean-Jacques
dc.date	2012-03-19T18:39:58Z
dc.date	2012-03-19T18:39:58Z
dc.date	2010-05-01
dc.date.accessioned	2023-02-17T21:03:43Z
dc.date.available	2023-02-17T21:03:43Z
dc.identifier	http://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	http://hdl.handle.net/10986/3796
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/244760
dc.description	The 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?
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 5311
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	ADDED TAX
dc.subject	AGENCY PROBLEM
dc.subject	ASYMMETRIC INFORMATION
dc.subject	AUCTION
dc.subject	AUCTIONS
dc.subject	BAILOUT
dc.subject	BID
dc.subject	BIDS
dc.subject	BOND
dc.subject	BUDGET CONSTRAINT
dc.subject	BUDGET CONSTRAINTS
dc.subject	BUSINESS OPPORTUNITIES
dc.subject	BUSINESS TAX
dc.subject	BUSINESS TAXES
dc.subject	CAPITAL FLIGHT
dc.subject	CAPITAL FLOWS
dc.subject	CAPITAL FORMATION
dc.subject	CAPITAL IMPORTER
dc.subject	CENTRAL BANK
dc.subject	CENTRAL GOVERNMENT
dc.subject	CENTRAL GOVERNMENTS
dc.subject	CITIES
dc.subject	COASTAL PROVINCES
dc.subject	COMMITMENT DEVICE
dc.subject	COMMON MARKET
dc.subject	COMPETITIVE MARKETS
dc.subject	CORPORATE INCOME TAX
dc.subject	CORPORATE TAX
dc.subject	CORPORATE TAX RATE
dc.subject	CORPORATE TAX RATES
dc.subject	CORPORATE TAXES
dc.subject	COST OF CAPITAL
dc.subject	COUNTRY MARKET
dc.subject	COUNTRY RISK
dc.subject	CURRENT EXPENDITURES
dc.subject	DECENTRALIZATION
dc.subject	DEMOCRACY
dc.subject	DEVELOPING COUNTRIES
dc.subject	DEVELOPING COUNTRY
dc.subject	DEVELOPING ECONOMIES
dc.subject	DIFFERENTIALS
dc.subject	DIRECT PAYMENTS
dc.subject	DISTRICTS
dc.subject	DOMESTIC PRICES
dc.subject	DOUBLE TAXATION
dc.subject	ECONOMIC ANALYSIS
dc.subject	ECONOMIC DEVELOPMENT
dc.subject	ECONOMIC GROWTH
dc.subject	ECONOMIC INTEGRATION
dc.subject	EFFECTIVE TAX RATES
dc.subject	ENTERPRISE OPERATIONS
dc.subject	EQUALIZATION
dc.subject	EQUIPMENTS
dc.subject	EQUITY INVESTMENT
dc.subject	EXCESS SUPPLY
dc.subject	EXPENDITURE
dc.subject	EXPENDITURE NEEDS
dc.subject	EXPENDITURES ON INFRASTRUCTURE
dc.subject	EXPORTER
dc.subject	EXTERNALITIES
dc.subject	FEDERAL SUBSIDIES
dc.subject	FEDERAL TRANSFER
dc.subject	FINANCIAL CRISIS
dc.subject	FINANCIAL MARKETS
dc.subject	FINANCIAL STUDIES
dc.subject	FISCAL AUTONOMY
dc.subject	FISCAL DECENTRALIZATION
dc.subject	FISCAL FEDERALISM
dc.subject	FISCAL POLICY
dc.subject	FISCAL TRANSFERS
dc.subject	FIXED CAPITAL
dc.subject	FIXED INVESTMENT
dc.subject	FOREIGN DIRECT INVESTMENT
dc.subject	FOREIGN FIRMS
dc.subject	FOREIGN INVESTMENT
dc.subject	FOREIGN INVESTORS
dc.subject	FOREIGN MARKET
dc.subject	FOREIGN TAX CREDITS
dc.subject	FREE TRADE
dc.subject	FREE TRADE AGREEMENT
dc.subject	GLOBALIZATION
dc.subject	GOVERNMENT BORROWING
dc.subject	GOVERNMENT POLICIES
dc.subject	GOVERNMENT REVENUE
dc.subject	HARD BUDGET CONSTRAINTS
dc.subject	HARMONIZATION
dc.subject	HOME COUNTRY
dc.subject	HOST COUNTRIES
dc.subject	HOST COUNTRY
dc.subject	HOST GOVERNMENTS
dc.subject	HUMAN CAPITAL
dc.subject	IMPLICIT TAX
dc.subject	INCOME TAX
dc.subject	INDUSTRIAL COUNTRIES
dc.subject	INFORMATION ASYMMETRIES
dc.subject	INFRASTRUCTURE DEVELOPMENT
dc.subject	INFRASTRUCTURE INVESTMENT
dc.subject	INSURANCE
dc.subject	INSURANCE COMPANIES
dc.subject	INTANGIBLE
dc.subject	INTANGIBLE ASSETS
dc.subject	INTERNATIONAL BANK
dc.subject	INTERNATIONAL CAPITAL
dc.subject	INTERNATIONAL CAPITAL MOBILITY
dc.subject	INTERNATIONAL INVESTORS
dc.subject	INTERNATIONAL TRADE
dc.subject	INVESTING
dc.subject	INVESTMENT BANK
dc.subject	INVESTMENT CLIMATE
dc.subject	INVESTMENT DECISION
dc.subject	INVESTMENT DECISIONS
dc.subject	INVESTMENT PROJECTS
dc.subject	JURISDICTION
dc.subject	JURISDICTIONS
dc.subject	LEVEL OF GOVERNMENT
dc.subject	LOCAL AUTONOMY
dc.subject	LOCAL BUSINESS
dc.subject	LOCAL GOVERNMENT
dc.subject	LOCAL GOVERNMENTS
dc.subject	LOCAL PUBLIC GOOD
dc.subject	MARGINAL COST
dc.subject	MARKET CONDITION
dc.subject	MARKET SIZE
dc.subject	MAYOR
dc.subject	MUNICIPALITIES
dc.subject	MUNICIPALITY
dc.subject	NATURAL RESOURCE
dc.subject	NET CAPITAL
dc.subject	OPPORTUNISTIC BEHAVIOR
dc.subject	OPPORTUNITY COST
dc.subject	OUTPUT
dc.subject	PERSONAL INCOME
dc.subject	POLICY CHOICES
dc.subject	POLICY DECISIONS
dc.subject	POLITICAL ACCOUNTABILITY
dc.subject	POLITICAL STABILITY
dc.subject	PORTFOLIO
dc.subject	POSITIVE EXTERNALITIES
dc.subject	POTENTIAL INVESTORS
dc.subject	PRIVATE CAPITAL
dc.subject	PRIVATE LOANS
dc.subject	PRIVATE SECTOR
dc.subject	PROPERTY TAX
dc.subject	PROVINCE
dc.subject	PROVINCES
dc.subject	PROVINCIAL GOVERNMENT
dc.subject	PROVINCIAL GOVERNMENTS
dc.subject	PROVINCIAL LEVEL
dc.subject	PROVINCIAL TAX
dc.subject	PROVINCIAL TAXES
dc.subject	PROVISIONS
dc.subject	PUBLIC
dc.subject	PUBLIC CONSUMPTION
dc.subject	PUBLIC ECONOMICS
dc.subject	PUBLIC EXPENDITURE
dc.subject	PUBLIC EXPENDITURES
dc.subject	PUBLIC FINANCE
dc.subject	PUBLIC FUNDS
dc.subject	PUBLIC GOODS
dc.subject	PUBLIC INFORMATION
dc.subject	PUBLIC INFRASTRUCTURE
dc.subject	PUBLIC INVESTMENT
dc.subject	PUBLIC LOANS
dc.subject	PUBLIC POLICY
dc.subject	PUBLIC SECTOR
dc.subject	PUBLIC SPENDING
dc.subject	REGIONAL INTEGRATION
dc.subject	REGIONAL TRADE
dc.subject	RESOURCE ALLOCATION
dc.subject	RETURN
dc.subject	RETURNS
dc.subject	REVENUE SHARING
dc.subject	SMALL COUNTRIES
dc.subject	SOCIAL VALUE
dc.subject	SOFT BUDGET CONSTRAINT
dc.subject	SOFT BUDGET CONSTRAINTS
dc.subject	SUB-NATIONAL
dc.subject	SUB-NATIONAL GOVERNMENT
dc.subject	SUBNATIONAL
dc.subject	SUBNATIONAL GOVERNMENT
dc.subject	SUBNATIONAL GOVERNMENTS
dc.subject	TAX
dc.subject	TAX AUTONOMY
dc.subject	TAX BASE
dc.subject	TAX BASES
dc.subject	TAX BREAKS
dc.subject	TAX BURDEN
dc.subject	TAX CHANGES
dc.subject	TAX COMPETITION
dc.subject	TAX CONCESSIONS
dc.subject	TAX COORDINATION
dc.subject	TAX CREDIT
dc.subject	TAX CREDITS
dc.subject	TAX DIFFERENTIALS
dc.subject	TAX INCENTIVES
dc.subject	TAX PAYMENTS
dc.subject	TAX PLANNING
dc.subject	TAX POLICIES
dc.subject	TAX POLICY
dc.subject	TAX PREFERENCES
dc.subject	TAX PROVISION
dc.subject	TAX PURPOSES
dc.subject	TAX RATE
dc.subject	TAX RATES
dc.subject	TAX REBATES
dc.subject	TAX REDUCTION
dc.subject	TAX REGIME
dc.subject	TAX REGIMES
dc.subject	TAX REVENUE
dc.subject	TAX REVENUE SHARING
dc.subject	TAX REVENUES
dc.subject	TAX SPARING
dc.subject	TAX TREATMENT
dc.subject	TAX TREATY
dc.subject	TAXATION
dc.subject	TOTAL GOVERNMENT EXPENDITURE
dc.subject	TRANSACTION
dc.subject	TRANSACTION COSTS
dc.subject	TRANSITION COUNTRIES
dc.subject	TREATIES
dc.subject	TREATY
dc.subject	URBAN ECONOMICS
dc.subject	USE TAX
dc.subject	UTILITIES
dc.subject	VALUATION
dc.subject	WORLD TRADE
dc.title	Fiscal Competition in Developing Countries : A Survey of the Theoretical and Empirical Literature
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	The World Region
dc.coverage	The World Region