학술저널
Taxation on Fixed Foreign Direct Investment and International Commodity Trade as a Potential Protector
- 서울대학교 경제연구소
- Seoul Journal of Economics
- Seoul Journal of Economics Volume 11 No.2
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1998.06223 - 241 (18 pages)
- 0
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This paper presents a model to explain why foreign direct investment (FDI) is possible even in the closed loop game where no precommitment on future FDI tax rate is available. Using a simple two-period model, we explain how international commodity trade between the capital-exporting country and the capital-importing country can be a passive leverage to protect the fixed FDI from being confiscated. We derive the necessary and sufficient conditions to guarantee an interior FDI tax rate in the closed loop game.
Abstract
Ⅰ. Introduction
Ⅱ. The Model
Ⅲ. The Decision Problems of the Private Agents and the CIC Government
Ⅳ. Equilibrium
Ⅴ. Example
Ⅵ. Conclusion
References
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