International Tax and Public Finance

, Volume 15, Issue 6, pp 637–646 | Cite as

Efficiency of capital taxation in an open economy: tax competition versus tax exportation

  • Wolf WagnerEmail author
  • Sylvester Eijffinger
Open Access


Tax competition and tax exportation have contrary implications for the efficiency of capital taxation. We provide a simple condition for the dominance of either force, which depends on the mobility of foreign investment. We use this condition to evaluate the relative importance of both forces in the US and in the EU.


Tax competition Tax exportation Foreign ownership Capital mobility 

JEL Classification

F2 H12 


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Copyright information

© The Author(s) 2008

Open AccessThis is an open access article distributed under the terms of the Creative Commons Attribution Noncommercial License (, which permits any noncommercial use, distribution, and reproduction in any medium, provided the original author(s) and source are credited.

Authors and Affiliations

  1. 1.CentER, TILEC and Department of EconomicsTilburg UniversityTilburgThe Netherlands
  2. 2.CentER and Department of EconomicsTilburg UniversityTilburgThe Netherlands

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