This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

International competition in corporate taxation: evidence from the OECD time series

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Kenneth Stewart
Michael Webb
Abstract

"Despite numerous studies, controversy remains about the impact of economic globalization on corporate taxation. Theoretical models of tax competition generate different predictions about trends in the level of tax burdens and the degree of convergence in tax burdens across countries. In this paper we present a purely empirical analysis of the evolution of tax burdens across OECD countries since the 1950s. Issues of measurement and methodology have contributed to the inconclusive character of studies to date, so we begin with an assessment of alternative measures of the burden. Problems with some commonly used measures of the tax burden are considered and the most plausible measures identified. Descriptive analysis of these time series reveals no evidence of a competitive 'race to the bottom' in corporate taxation and little evidence of even a harmonization of the tax burden. Many inferential studies of corporate taxation base their conclusions on cross-sectional analysis; in contrast, we adopt an explicitly time-series method to what are essentially time-series questions. Cointegration methodology originally developed to study issues of convergence of living standards is applied, and fails to reveal evidence of convergence of tax burdens for the OECD and Europe as a whole. It does, however, indicate that there has been some harmonization within smaller groups of countries, mainly in northern Europe. Important questions remain about the effectiveness and impact of corporate taxation in an increasingly open and integrated global economy, but we find little evidence to support fears that the burden of taxation is being lifted from corporations." Copyright © CEPR, CES, MSH, 2006.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-0327.2006.00156.x
File Format: text/html
File Function: link to full text
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Publisher Info
Article provided by CEPR, CES, MSH in its journal Economic Policy.

Volume (Year): 21 (2006)
Issue (Month): 45 (01)
Pages: 153-201
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:bla:ecpoli:v:21:y:2006:i:45:p:153-201

Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0266-4658

Order Information:
Web: http://www.blackwellpublishing.com/subs.asp?ref=0266-4658

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

Related research
Keywords:

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Ganghof, Steffen, & Philipp Genschel, 2007. "Taxation and Democracy in the EU," MPIfG Discussion and Working Papers 2, Max Planck Institute for the Study of Societies. [Downloadable!]
  2. Kai Konrad, 2008. "Mobile tax base as a global common," International Tax and Public Finance, Springer, vol. 15(4), pages 395-414, August. [Downloadable!] (restricted)
    Other versions:
  3. C. Dembour, 2008. "Competition for Business Location: A Survey," Journal of Industry, Competition and Trade, Springer, vol. 8(2), pages 89-111, June. [Downloadable!] (restricted)
Statistics
Access and download statistics

Did you know? IDEAS indexes over 800000 items of research in Economics alone.

This page was last updated on 2009-12-18.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.