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Corporate Taxation and Exports: Evidence from Italian Firm-Level Data

Author

Listed:
  • Daniela Federici

    (Department of Economics and Law, University of Cassino and Southern Lazio, Italy)

  • Valentino Parisi

    (Department of Economics and Law, University of Cassino and Southern Lazio, Italy)

Abstract

This paper analyses the relationship between corporate taxes and exports of Italian firms. We use an integrated dataset for the manufacturing industry combining, for the period 2004-2006, survey data on enterprises and company accounts to analyse firms' export participation. Our results suggest that export propensity as well as export intensity are positively associated with corporate taxation. This finding can be traced out to greater ability of exporting firms to transfer the tax-induced costs on international markets, compared to domestic firms. The methodology used to calculate the average and the marginal corporate tax rates allows deriving firm-specific effective corporate tax rates.

Suggested Citation

  • Daniela Federici & Valentino Parisi, 2014. "Corporate Taxation and Exports: Evidence from Italian Firm-Level Data," Review of Economics & Finance, Better Advances Press, Canada, vol. 4, pages 23-38, May.
    • Handle: RePEc:bap:journl:140203
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    References listed on IDEAS

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    Cited by:

    1. Bawa, Siraj, 2017. "Corporate Taxation in the Open Economy without Pareto," MPRA Paper 80857, University Library of Munich, Germany, revised Aug 2017.
    2. Federici, Daniela & Parisi, Valentino & Ferrante, Francesco, 2020. "Heterogeneous firms, corporate taxes and export behavior: A firm-level investigation for Italy," Economic Modelling, Elsevier, vol. 88(C), pages 98-112.

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    More about this item

    Keywords

    Corporate taxation; Exports; Effective tax rates; Italy;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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