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Tax Competitiveness of the New EU Member States

Author

Listed:
  • Askoldas Podviezko

    (Agricultural Policy and Foreign Trade Division, Lithuanian Institute of Agrarian Economics, LT-03105 Vilnius, Lithuania)

  • Lyudmila Parfenova

    (Economic Faculty, P. G. Demidov Yaroslavl State University, RU-150003 Yaroslavl, Russia)

  • Andrey Pugachev

    (Economic Faculty, P. G. Demidov Yaroslavl State University, RU-150003 Yaroslavl, Russia)

Abstract

This paper investigates tax competitiveness among the EU member countries. The tax competition of countries causes both positive and negative effects on macroeconomic processes such as the effectiveness of government spending, the rationality of supply of externalities, and the length and amplitudes of business cycles. A considerable reduction of corporate tax in the EU is related to increased tax competition after new members entered the EU. Multiple criteria methods were chosen for the quantitative evaluation of EU countries from different regions of the EU. Criteria of evaluation were chosen and structured into a hierarchy. The convergence process of the new members of the EU is reinforced with the increasing tax competitiveness of such countries. Results of the multiple criteria evaluation revealed both the factors that increased the tax competitiveness of new members of the EU, and outlined the factors that hampered such competition.

Suggested Citation

  • Askoldas Podviezko & Lyudmila Parfenova & Andrey Pugachev, 2019. "Tax Competitiveness of the New EU Member States," Journal of Risk and Financial Management, MDPI, Open Access Journal, vol. 12(1), pages 1-19, February.
  • Handle: RePEc:gam:jjrfmx:v:12:y:2019:i:1:p:34-:d:205829
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    1. Askoldas Podviezko & Ralph Kurschus & Giedre Lapinskiene, 2019. "Eliciting Weights of Significance of Criteria for a Monitoring Model of Performance of SMEs for Successful Insolvency Administrator’s Intervention," Sustainability, MDPI, Open Access Journal, vol. 11(20), pages 1-16, October.

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