Gaigné, Carl; Wooton, Ian - C.E.P.R. Discussion Papers - 2010
costs are high. Trade integration makes imposing the same tax on all firms more appealing such that, at low trade costs, the … unique Nash equilibrium is characterized by uniform corporate taxes being set by both governments. However, when trade costs … the distribution of immobile firms is exogenous. We show that countries discriminate against immobile firms when trade …