Capital Taxation, Globalization, and International Tax Competition

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Capital Taxation, Globalization, and International Tax Competition

Author Info

Kenneth G. Stewart () (Department of Economics, University of Victoria)
Michael C. Webb () (Department of Political Science, University of Victoria)

Abstract

The historical evolution of the corporate tax burden in the OECD nations is studied, beginning with an assessment of alternative measures of the burden. Descriptive analysis of these time series reveals no evidence of a competitive "race to the bottom" in capital taxation, and little evidence of even a harmonization of the tax burden. These conclusions for the OECD and Europe as a whole are confirmed by cointegration analysis, which does however indicate that there may have been some modest harmonization within smaller groups of countries.

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Paper provided by Department of Economics, University of Victoria in its series Econometrics Working Papers with number 0301.

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Length: 46 pages
Date of creation: 05 Feb 2003
Date of revision:
Handle: RePEc:vic:vicewp:0301

Note: ISSN 1485-6441
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Find related papers by JEL classification:
C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions
F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

This paper has been announced in the following NEP Reports:

NEP-AFR-2003-02-10 (Africa)
NEP-ALL-2003-02-10 (All new papers)
NEP-PKE-2003-02-10 (Post Keynesian Economics)

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