Taxation in a Globalized Economy: Resource Allocation, Monopolistic Competition, and Cross-Border Dynamics.

Nicolas Djob Li Ngue

July 2025

Abstract

This thesis explores the complexities of tax policy design in a globalized context, focusing on the implications of resource allocation and tariff strategies, particularly in relation to Value Added Tax (VAT) systems. It examines the challenges and opportunities presented by monopolistic competition and the evolving landscape of taxation for cross-border workers. Through a comparative analysis of destination and origin principles, this thesis seeks to provide information on how tax policies can be optimized to improve fairness, efficiency, and economic growth. This thesis is structured into three chapters, each addressing distinct aspects of the value-added tax (VAT) literature. The first chapter proposes the design of an optimal VAT system based on the destination principle, which facilitates an efficient allocation of resources within an open economy. The subsequent two chapters engage in a comparative analysis of the destination principle--where goods are taxed at the point of consumption-- and the origin principle--where goods are taxed at the point of production. The analysis presented in the third chapter incorporates considerations of export transport costs and the mobility of skilled labor.

Bibtex

@phdthesis{thesis,
  author    = {Djob Nicolas},
  title     = {Taxation in a Globalized Economy: Resource Allocation, Monopolistic Competition, and Cross-Border Dynamics.},
  school    = {CY Cergy Paris Université},
  year      = {2025},
  abstract  = { This thesis explores the complexities of tax policy design in a globalized context, focusing on the implications of resource allocation and tariff strategies, particularly in relation to Value Added Tax (VAT) systems. It examines the challenges and opportunities presented by monopolistic competition and the evolving landscape of taxation for cross-border workers. Through a comparative analysis of destination and origin principles, this thesis seeks to provide information on how tax policies can be optimized to improve fairness, efficiency, and economic growth.
      
        This thesis is structured into three chapters, each addressing distinct aspects of the value-added tax (VAT) literature. The first chapter proposes the design of an optimal VAT system based on the destination principle, which facilitates an efficient allocation of resources within an open economy. The subsequent two chapters engage in a comparative analysis of the destination principle--where goods are taxed at the point of consumption-- and the origin principle--where goods are taxed at the point of production. The analysis presented in the third chapter incorporates considerations of export transport costs and the mobility of skilled labor.}
}