The Impact Of Taxes On Trade Competitiveness
AbstractFew macroeconomic studies exist on the effects of taxes on international trade. Our hypothesis is that higher tax rates raise a country’s production costs, leading to a decrease in exports in the long run. With panel data for 25 OECD countries, we use average effective tax rates on consumption, labor income and capital income to examine their impact on bilateral trade. We find that that all three types of taxes reduce the flow of international trade.
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Bibliographic InfoPaper provided by University of Delaware, Department of Economics in its series Working Papers with number 11-09.
Length: 32 pages
Date of creation: 2011
Date of revision:
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Web page: http://www.lerner.udel.edu/departments/economics/department-economics/
More information through EDIRC
tax ratio; average effective tax rate; international trade;
Find related papers by JEL classification:
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
- F10 - International Economics - - Trade - - - General
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
This paper has been announced in the following NEP Reports:
- NEP-ACC-2011-08-15 (Accounting & Auditing)
- NEP-ALL-2011-08-15 (All new papers)
- NEP-CSE-2011-08-15 (Economics of Strategic Management)
- NEP-INT-2011-08-15 (International Trade)
- NEP-PBE-2011-08-15 (Public Economics)
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