Multinationals, Tax Holidays, and Technology Transfer

15 Pages Posted: 27 Apr 2009

See all articles by Kaz Miyagiwa

Kaz Miyagiwa

Emory University - Department of Economics; Osaka University - Institute of Social and Economic Research (ISER); Florida International University (FIU) - Department of Economics

Yuka Ohno

affiliation not provided to SSRN

Multiple version iconThere are 2 versions of this paper

Date Written: 2008-10-15

Abstract

Host country governments often grant investment incentives to foreign firms located in their territories. We show that such preferential treatment of foreign firms can induce transfer of foreign technology, facilitate entry by the local firm, and improve host country welfare. However, this pro-competitive outcome results when preferential treatment is granted for a limited time. Permanent tax concessions yield the opposite effect.

Suggested Citation

Miyagiwa, Kaz and Ohno, Yuka, Multinationals, Tax Holidays, and Technology Transfer (2008-10-15). Japanese Economic Review, Vol. 60, Issue 1, pp. 82-96, March 2009. Available at SSRN: https://ssrn.com/abstract=1378283 or http://dx.doi.org/10.1111/j.1468-5876.2008.00475.x

Kaz Miyagiwa (Contact Author)

Emory University - Department of Economics ( email )

1602 Fishburne Drive
Atlanta, GA 30322
United States

Osaka University - Institute of Social and Economic Research (ISER) ( email )

6-1 Mihogaoka
Ibaraki Osaka 567-0047
Japan

Florida International University (FIU) - Department of Economics ( email )

Miami, FL 33199
United States

Yuka Ohno

affiliation not provided to SSRN

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