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Trade integration and corporate income tax differentials
| Content Provider | Semantic Scholar |
|---|---|
| Author | Exbrayat, Nelly Geys, Benny Behrens, Kristian Carrère, C. Combes, Pierre-Philippe Dequiedt, Vianney Fuest, Clemens Gathmann, Christina Haufler, Andreas Heggedal, Tom Reiel Janeba, Eckhard Maureth, Per Botolf Moen, Espen R. Jofre-Monseny, Jordi Kalamova, Margarita Konrad, Kai A. Krueger, Dirk Loretz, Simon Ottaviano, Gianmarco I. P. Paillacar, Rodrigo Paty, Sonia Poncet, Sandra Rota-Graziosi, Grégoire Riou, Stéphane Sousa, José T. De Wooton, Ian Ypersele, Tanguy Van |
| Copyright Year | 2014 |
| Abstract | Building on recent contributions to the New Economic Geography literature, this paper analyses the relation between asymmetric market size, trade integration and corporate income tax differentials across countries. First, relying on Ottaviano and Van Ypersele’s (2005) footloose capital model of tax competition, we illustrate that trade integration reduces the importance of relative market size for differences in the extent of corporate taxation between countries. Then, using a dataset of 26 OECD countries over the period 1982-2004, we provide supportive evidence of these theoretical predictions: i.e., market size differences are strongly positively correlated with corporate income tax differences across countries but, crucially, trade integration weakens this link. These findings are obtained controlling for the potential endogeneity of trade integration and are robust to alternative specifications. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | https://brage.bibsys.no/xmlui/bitstream/handle/11250/196129/Geys_ITPF_2014.pdf?sequence=1 |
| Language | English |
| Access Restriction | Open |
| Subject Keyword | DNA Integration Endogeneity (econometrics) Income Tax Organisation for Economic Co-Operation and Development Silo (dataset) Specification Taxes |
| Content Type | Text |
| Resource Type | Article |
