The effect of a policy competition on the location of firms under asymmetric transportation costs

Research Project

Project/Area Number	26780165
Research Category	Grant-in-Aid for Young Scientists (B)
Allocation Type	Multi-year Fund
Research Field	Economic policy
Research Institution	Kyushu Sangyo University
Principal Investigator	Hirose Kyoko 九州産業大学, 経済学部, 准教授 (30435094)
Project Period (FY)	2014-04-01 – 2018-03-31
Project Status	Completed (Fiscal Year 2017)
Budget Amount *help	¥2,730,000 (Direct Cost: ¥2,100,000、Indirect Cost: ¥630,000) Fiscal Year 2016: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000) Fiscal Year 2015: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000) Fiscal Year 2014: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000)
Keywords	租税競争 / 直接投資 / 非対称性 / 理論分析
Outline of Final Research Achievements	We constructed models to investigate firms’ location behavior under the case in which there are two countries whose distance from a third country are not same, and there are demand and rival firms in the third country. The firms choose one country from the two countries as a host country (a base for their production). Governments of each country can use tax (or subsidy) to attract the firms to its own country. We show the location behaviors of the firms when the governments compete the tax and when they choose the harmonized tax. Moreover, we constructed a basic model in order to investigate the relationship between the difference of wages and location pattern of firms.