TY - BOOK ID - 136676646 TI - Fiscal Competition in Developing Countries : A Survey of the Theoretical and Empirical Literature AU - Madies, Thierry AU - Dethier, Jean-Jacques PY - 2010 PB - Washington, D.C., The World Bank, DB - UniCat KW - Central governments KW - Debt Markets KW - Decentralization KW - Differentials KW - Districts KW - Emerging Markets KW - Finance and Financial Sector Development KW - Fiscal federalism KW - Local governments KW - Macroeconomics and Economic Growth KW - Private Sector Development KW - Provinces KW - Public consumption KW - Public expenditures KW - Public finance KW - Public Sector Development KW - Public Sector Economics KW - Subnational Economic Development KW - Tax KW - Tax autonomy KW - Tax competition KW - Tax concessions KW - Tax incentives KW - Tax policies KW - Tax purposes KW - Tax rate KW - Tax rates KW - Taxation KW - Taxation & Subsidies UR - https://www.unicat.be/uniCat?func=search&query=sysid:136676646 AB - The last two decades have witnessed a sharp increase in foreign direct investment (FDI) flows and increased competition among developing countries to attract FDI, resulting in higher investment incentives offered by host governments and removal of restrictions on operations of foreign firms in their countries. Fiscal competition between governments can take the form of business tax rebates, productivity-enhancing public infrastructure or investment incentives such as tax holidays, accelerated depreciation allowances or loss carry-forward for income tax purposes. It can take place between governments of different countries or between local governments within the same country. This paper surveys the recent theoretical and empirical economic literature on decentralization which attempts to answer three questions. First, does theoretical literature on fiscal competition and "bidding races" contribute to a better understanding of such phenomenon in developing countries? Second, are FDI inflows in developing countries sensitive to fiscal incentives and is there empirical evidence of strategic behavior from the part of developing countries in order to attract FDI? Third, what evidence is there about fiscal competition among local governments in developing countries? ER -