The Optimal Export-Share and Optimal Tax Policy for FDI

• Main Authors: Jan, Uen-He, 詹文河
• Other Authors: Jiunn-Rong Chiou
• Format: Others
• Language: zh-TW
• Published: 1998
• Online Access: http://ndltd.ncl.edu.tw/handle/11772284523062123039

碩士 === 淡江大學 === 產業經濟學系 === 86 === The purpose of this paper is to inquire into the optimal export- share requirement and optimal tax policy of the host country for foreign direct investment (FDI) without import.We arrive at the conclusion that described as below: First, when the host country considers both the export-share requirements and tax rate, and under the situation of monopoly of the multinational enterprise (MNE), the host country should taxes on the MNE. If the host country taxes on the total outputs of the MNE, then the optimal export-share may be positive. But if the host country taxes only on the sales of the host country of MNE, then the optimal export-share should be zero. Secondly, when there are a local firm and the MNE play Cournot game in the host country's market, and the export-share requirements is the only policy considered, the optimal export-share will depend on the relative production costs of both firms. Thirdly, the host country should tax on the MNE when the host country considers both the export-share requirements and the tax rate. If the production cost of the MNE is lower than that of the local firm, then the host country should not reinforce the MNE to export. Otherwise, the host countryshould reinforce the MNE to export all it's products. Furthermore, if the host country is able to adapt the tax policy on the MNE, then the optimal condition for reinforcing MNE to export should be relaxed.