IDEAS home Printed from https://ideas.repec.org/p/cir/cirwor/2014s-46.html

Tax policy effects on entrepreneurship in canada, 1984-2009: A dynamic panel provincial data approach

Author

Listed:
  • Marco Lugo Rodriguez

Abstract

In this paper, we examine the effects of fiscal policy on entrepreneurship outcomes in the Canadian provinces for the 1984 2009 period. This is the first paper to assess the impact of taxation on entrepreneurship in Canada by using intensive-margin measures (i.e. entrepreneurial income and employment) instead of more commonly used participation measures, as they are thought to be more closely related to policy goals such as entrepreneurial sustainability. A dynamic panel data approach is employed in order to account for potential trends in both taxation policy and entrepreneurial outcomes. The results are consistent with previous literature of the United States and indicate that if the trends, caused by incomplete labour mobility among other things, are indeed important then tax policy has no statistically significant impact on the measured entrepreneurial outcomes.

Suggested Citation

  • Marco Lugo Rodriguez, 2014. "Tax policy effects on entrepreneurship in canada, 1984-2009: A dynamic panel provincial data approach," CIRANO Working Papers 2014s-46, CIRANO.
    • Handle: RePEc:cir:cirwor:2014s-46
    as

    Download full text from publisher

    File URL: https://cirano.qc.ca/files/publications/2014s-46.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nadja Kamhi & Danny Leung, 2005. "Recent Developments in Self-Employment in Canada," Staff Working Papers 05-8, Bank of Canada.
    2. Christian Pfeifer, 2011. "Risk Aversion and Sorting into Public Sector Employment," German Economic Review, Verein für Socialpolitik, vol. 12(1), pages 85-99, February.
    3. David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LLC, vol. 9(1), pages 86-136, March.
    4. Skriabikova, Olga J. & Dohmen, Thomas & Kriechel, Ben, 2014. "New evidence on the relationship between risk attitudes and self-employment," Labour Economics, Elsevier, vol. 30(C), pages 176-184.
    5. Nadim Ahmad & Richard G. Seymour, 2008. "Defining Entrepreneurial Activity: Definitions Supporting Frameworks for Data Collection," OECD Statistics Working Papers 2008/1, OECD Publishing.
    6. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christopher Dick-Sagoe & Ernest Ngeh Tingum & Peter Asare-Nuamah & Denis N. Yuni & Nicholas Baidoo, 2025. "Central transfers and incentives to collect local revenue among the Central Region of Ghana’s local government officials: analysing the flypaper effect," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-12, December.
    2. Li Chen & Stéphane Mbiankeu Nguea, 2025. "Natural Resource Protection: A Path to Human Development in Africa," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(5), pages 6604-6619, October.
    3. Prianto Budi Saptono & Gustofan Mahmud & Intan Pratiwi & Dwi Purwanto & Ismail Khozen & Lambang Wiji Imantoro & Maria Eurelia Wayan, 2024. "Book-Tax Differences during the Crisis: Does Corporate Social Responsibility Matter?," Sustainability, MDPI, vol. 16(17), pages 1-38, August.
    4. Arminen, Heli & Menegaki, Angeliki N., 2019. "Corruption, climate and the energy-environment-growth nexus," Energy Economics, Elsevier, vol. 80(C), pages 621-634.
    5. Bhattacharya, Mita & Okafor, Luke Emeka & Pradeep, V., 2021. "International firm activities, R&D, and productivity: Evidence from Indian manufacturing firms," Economic Modelling, Elsevier, vol. 97(C), pages 1-13.
    6. Hyunseok Kim & GianCarlo Moschini, 2018. "The Dynamics of Supply: U.S. Corn and Soybeans in the Biofuel Era," Land Economics, University of Wisconsin Press, vol. 94(4), pages 593-613.
    7. Rycx, François & Saks, Yves & Tojerow, Ilan, 2016. "Misalignment of Productivity and Wages across Regions? Evidence from Belgian Matched Panel Data," IZA Discussion Papers 10336, IZA Network @ LISER.
    8. Deleidi, Matteo & Mazzucato, Mariana & Semieniuk, Gregor, 2020. "Neither crowding in nor out: Public direct investment mobilising private investment into renewable electricity projects," Energy Policy, Elsevier, vol. 140(C).
    9. David J. Spielman & Xingliang Ma, 2016. "Private Sector Incentives and the Diffusion of Agricultural Technology: Evidence from Developing Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 52(5), pages 696-717, May.
    10. Peter Eshak Nashed Soliman & Reham Salah Beram, 2026. "Sustainable Development Goals and Unemployment: Worldwide Evidence," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 17(2), pages 3555-3605, April.
    11. Kyuho Jin & Joowon Lee & Sung Min Hong, 2021. "The Dark Side of Managing for the Long Run: Examining When Family Firms Create Value," Sustainability, MDPI, vol. 13(7), pages 1-20, March.
    12. Miomir Jovanović & Ljiljana Kašćelan & Aleksandra Despotović & Vladimir Kašćelan, 2015. "The Impact of Agro-Economic Factors on GHG Emissions: Evidence from European Developing and Advanced Economies," Sustainability, MDPI, vol. 7(12), pages 1-21, December.
    13. Anna Long & Matthew S. Wood & Daniel L. Bennett, 2023. "Entrepreneurial organizing activities and nascent venture performance," Small Business Economics, Springer, vol. 60(2), pages 433-461, February.
    14. Majid M. Al-Sadoon & Sergi Jiménez-Martín & Jose M. Labeaga, 2019. "Simple methods for consistent estimation of dynamic panel data sample selection models," Economics Working Papers 1631, Department of Economics and Business, Universitat Pompeu Fabra.
    15. Abdullah Almutairi & Baban Eulaiwi & Robert Evans & Grantley Taylor, 2023. "Tax Haven Use and Related‐Party Transactions: Evidence from Australia," Australian Accounting Review, CPA Australia, vol. 33(4), pages 352-374, December.
    16. Armey, Laura E. & McNab, Robert M., 2018. "Expenditure decentralization and natural resources," The Quarterly Review of Economics and Finance, Elsevier, vol. 70(C), pages 52-61.
    17. Leon-Gonzalez, Roberto & Vinayagathasan, Thanabalasingam, 2015. "Robust determinants of growth in Asian developing economies: A Bayesian panel data model averaging approach," Journal of Asian Economics, Elsevier, vol. 36(C), pages 34-46.
    18. Stephanie Prümer & Claus Schnabel, 2019. "Questioning the Stereotype of the “Malingering Bureaucrat”: Absence from Work in the Public and Private Sector in Germany," Kyklos, Wiley Blackwell, vol. 72(4), pages 570-603, November.
    19. Jiatao Li & Haoyuan Ding & Yichuan Hu & Guoguang Wan, 2021. "Dealing with dynamic endogeneity in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(3), pages 339-362, April.
    20. Frondel, Manuel & Kaestner, Kathrin & Sommer, Stephan & Vance, Colin, 2022. "Photovoltaics and the solar rebound: Evidence for Germany," Ruhr Economic Papers 954, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

    More about this item

    Keywords

    ;
    ;
    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cir:cirwor:2014s-46. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Webmaster (email available below). General contact details of provider: https://edirc.repec.org/data/ciranca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.