This paper explores the instrument of rental factories used by governmental bodies to promote regional investments and economic growth. Having the competition between locations concerning the attractiveness for companies as a starting point, this article presents and describes the fundamental informational asymmetry of investment decisions between investors and governmental bodies. The analysis continues with an in-depht investigation of rental factories as an instrument in the location competition. Finally, the paper concludes with an assessment of rental factories and their effect on economic welfare.
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- Wolfgang von Hessling (Author), 2007, Mietfabriken als Instrument des Ansiedlungswettbewerbs, Munich, GRIN Verlag, https://www.grin.com/document/117561
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