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Corporate Taxation and Exports

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Author Info

  • Daniela Federici

    (University of Cassino)

  • Valentino Parisi

    (University of Cassino)

Abstract

This paper analyses the relationship between corporate taxes and exports at firm level in Italy. We use an integrated dataset that combines for the period 2004-2006 survey data (Indagine sulle Imprese Manifatturiere) on enterprises and company accounts for the manufacturing sector to estimate a Probit and a Tobit model. Our results suggest that export participation as well as export intensity increase with corporate taxation. Consistently with recent developments of the corporate tax incidence theory in an open economy, this finding can be traced out to greater ability of exporting firms to shift the tax burden on international markets, compared to domestic firms. Calculation of the average and the marginal corporate tax rates uses the methodology recently developed by Egger et al. (2009) which allows deriving firm-specific effective corporate tax rates.

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Bibliographic Info

Paper provided by Universita' di Cassino, Dipartimento di Scienze Economiche in its series Working Papers with number 2012-01.

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Length: 24 pages
Date of creation: Dec 2012
Date of revision:
Handle: RePEc:css:wpaper:2012-01

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Postal: Dipartimento di Scienze Economiche Via S. Angelo Loc. Folcara 03043 Cassino (FR) - Italy
Phone: +3907762994734
Fax: +3907762994834
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Web page: http://www.eco-giu.uniclam.it/Dipartimento/Info
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Keywords: corporate taxation; exports; effective tax rates; Italy;

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References

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