Race to the bottom

The race to the bottom is a socio-economic phrase which is used to describe government deregulation of the business environment or taxes in order to attract or retain economic activity in their jurisdictions. An outcome of globalization and free trade, the phenomenon may occur when competition increases between geographic areas over a particular sector of trade and production.

See also

Game Theory, Fiscal dumping

Material

• “Racing to the bottom” in The Economist
• Hahnel, Robin (March 2000). “Houston, we have a problem: Challenging globalization”. Z Magazine.
• http://lexicon.ft.com/Term?term=race-to-the-bottom

Papers

• Grandy, C. (1989). “New Jersey Corporate Chartermongering, 1875-1929”. The Journal of Economic History 49 (3): 677–92.