School of Business
corporate law, price elasticity of demand, market forces, OECD, location decisions
Business Analytics | Commercial Law | International Trade Law
Kendall, Luke, "Price Elasticity of Demand in the Market for Governance in Businesses Location Decisions in OECD Nations from 2015-2019" (2021). Senior Honors Theses. 1060.
This study proposes a framework of viewing the competition between governments to attract businesses into their jurisdiction as a competitive market. Literature is reviewed on the market forces and incentives of businesses and governments in location decisions. A possible gap in the literature of quantifying the price elasticity of competition between national governments for business activity is identified. OECD data is analyzed using equations supported by literature and results are evaluated to better understand the elasticity of international location decisions. The results of this study indicate that elasticity varies widely between countries, and countries with smaller economies may face more elastic demand than more powerful nations.