International Competition for Multinational Investment
研究了为外国跨国公司提供投资补贴的经济合理性，发现当集聚效应足够强时，补贴能吸引多家外资进入并建立现代产业，但国家间的补贴竞争会将大部分经济租金转移给跨国公司。
We examine the economic justification for providing investment subsidies to foreign‐owned multinationals. These provide employment opportunities and generate demand for domestic intermediate inputs, produced by domestic workers with increasing returns to scale. Offering subsidies to multinationals may be in the national interest if the investment raises the net value of domestic production. When agglomerative forces are sufficiently strong, a subsidy that attracts the first foreign firm may induce several to enter, establishing a thriving modern sector. With a limited number of foreign enterprises, countries may compete to attract investment. This subsidy competition transfers much of the rents to the multinationals.