When does International Capital Mobility Require Tax Coordination?

D. Rodrik, T.P.M.C. van Ypersele

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Basic economic theory identifies a number of efficiency gains that derive from international capital mobility. But just as with free trade in goods, there is no guarantee that capital mobility makes everyone better o¤. Consequently, capital mobility may be politically unsustainable even though it enhances efficiency. This paper discusses how such a dilemma might arise, and suggests that international tax coordination might serve as a way out under some circumstances.
Original languageEnglish
Place of PublicationTilburg
Number of pages10
Publication statusPublished - 1999

Publication series

NameCentER Discussion Paper


  • capital movements
  • taxation


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