Some analysts have argued that this type of regime is just a subsidy scheme by another
name and that by competing with each other different locations are just engaged in a “race
to the bottom” that only benefits multinational corporations. While some of that may be
so, the fact of the matter is that companies in certain key industries do face very attractive
fiscal conditions in other places and a country that does not compete along this dimension
may have a tough time growing in those industries.
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