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Tax competition and the relocation process

Author

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  • Michal Sosnowski

    (Wroclaw University of Economics)

Abstract

In this article the author discusses the problem relating to the tax competition in the context of relocation as a process resulting from the ongoing globalization of economic activity. For this purpose the author discusses the essence and causes of tax competition and relocation. The conclusion is that relocation leads usually to an increase in the competitiveness of enterprises, their development, and thus to the development of the economies of individual countries. Healthy competition leads to streamlining the fiscal policies of competing countries and to the creation of a business-friendly atmosphere. Therefore, the role of governments, particularly in the developing countries, is such action, including the use of fiscal instruments, that would enable the achievement of competitive advantage in the international market and socio-economic development.

Suggested Citation

  • Michal Sosnowski, 2015. "Tax competition and the relocation process," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 14(1), pages 33-45, March.
    • Handle: RePEc:cpn:umkeip:v:14:y:2015:i:1:p:33-45
    DOI: 10.12775/EiP.2015.003
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    References listed on IDEAS

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    Cited by:

    1. Federica Rossi & Magdalena Dej, 2020. "Where do firms relocate? Location optimisation within and between Polish metropolitan areas," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(3), pages 615-640, June.

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    More about this item

    Keywords

    taxation; tax competition; relocation;
    All these keywords.

    JEL classification:

    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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