Top Page > Research Results - Discussion Papers > No.62
The Silk Road:
Tax Competition among Nation States
April 2009
Abstract
Many commodities, before reaching their final destinations, are transshipped through several nations, each having independent authorities to tax commodities in transit. However, we show that such “middle” nations may be unable to exercise monopoly power over commodities in transit and all the rents are captured by the country where the commodities are produced and the country where there are markets.
