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Does tax competition drive cooperation in local economic development policies? Evidence on inter-local business parks in Germany
An increasing number of municipalities cooperates in the field of economic development. In this paper, we focus on a specific instrument in this field, namely the development of joint business parks. We apply a hazard model to data from West-German municipalities between 2000 and 2015. We find inter...
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| Published in: | MAGKS - Joint Discussion Paper Series in Economics (Band 06-2019) |
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| Main Authors: | , , |
| Format: | Article |
| Language: | English |
| Published: |
Philipps-Universität Marburg
2019
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| Subjects: | |
| Online Access: | PDF Full Text |
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| Summary: | An increasing number of municipalities cooperates in the field of economic development. In this paper, we focus on a specific instrument in this field, namely the development of joint business parks. We apply a hazard model to data from West-German municipalities between 2000 and 2015. We find inter-local business parks to be more frequent among small municipal-ities and in constellations where suitable land is scarce. Our main focus rests on the role of tax competition. An analogy building on the literature on international tax coordination supports the hypothesis that inter-local business parks are more likely in regions where tax competition is intense. The evidence is affirmative: We find that the likelihood of inter-local business park formation to increase in the intensity of local tax competition. |
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| Physical Description: | 35 Pages |
| ISSN: | 1867-3678 |
| DOI: | 10.17192/es2024.0601 |