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Capital Taxation, Globalization, and International Tax Competition

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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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  • Kenneth G. Stewart & Michael C. Webb, 2003. "Capital Taxation, Globalization, and International Tax Competition," Econometrics Working Papers 0301, Department of Economics, University of Victoria.
    • Handle: RePEc:vic:vicewp:0301
    Note: ISSN 1485-6441
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    File URL: https://www.uvic.ca/socialsciences/economics/_assets/docs/econometrics/ewp0301.pdf
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    Cited by:

    1. Y. Chen & W. H. Huang & P. J. Regis, 2014. "Do Asia and Pacific countries compete in corporate tax rates?," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 19(1), pages 25-51, January.
    2. Zoltán Pitti & Magdolna Sass, 2010. "Tax competition and coordination within the EU — the case of the EU-10," Transfer: European Review of Labour and Research, , vol. 16(1), pages 37-54, February.

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    More about this item

    Keywords

    Corporate tax; globalization; cointegration; convergence;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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