ESTIMATING THE RIVALNESS OF STATE‐LEVEL INWARD FDI1. (8th January 2014)

• Record Type: Journal Article
• Authors: Brülhart, Marius; Schmidheiny, Kurt; Brakman, Steven; van Marrewijk, Charles; Partridge, Mark
• Is Part Of: Journal of regional science. Volume 55:Number 1(2015)
• Page Start: 139
• Page End: 148
• Publication Date: 2014-01-08
• Subjects: Economics -- Research -- Periodicals; Regional planning -- Periodicals; 330.072
• DOI: 10.1111/jors.12102
• Languages: English
• ISSNs: 0022-4146

Abstract

<abstract abstract-type="main"> <title>ABSTRACT</title> <p>We develop a method for estimating the rivalness of tax bases using the structures of the conditional logit, Poisson, and nested logit models. As an illustration, we apply this method to estimate the effect of state‐level capital taxation on U.S. inward foreign direct investment (FDI). The assumption of perfect nonrivalness can in some cases be rejected, but the assumption of perfect rivalness cannot. Competition over FDI across U.S. states could well be a zero‐sum game.</p> </abstract>