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Corporate taxation and exports

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  • Federici, Daniela
  • Parisi, Valentino

Abstract

The paper analyses the relationship between corporate taxes and exports at firm level. We use an integrated dataset that combines, for the period 2004-2006, survey data(Indagine sulle Imprese Manifatturiere) and company accounts for the manufacturing sector to estimate a Probit and a Tobit model. Our results suggest that export participation as well as export intensity increase with corporate taxation. Consistently with recent developments of the corporate tax incidence theory, this finding can be traced out to the greater ability of exporting firms to shift the tax burden on international markets, compared to domestic firms. Calculation of the average and marginal corporate tax rates uses the methodology recently developed by Egger et al. (2009) which allows deriving firm-specific effective corporate tax rates.

Suggested Citation

  • Federici, Daniela & Parisi, Valentino, 2012. "Corporate taxation and exports," MPRA Paper 41012, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:41012
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    References listed on IDEAS

    as
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    Cited by:

    1. Kayis-Kumar, Ann, 2018. "Implementing corporate tax cuts at the expense of neutrality? A legal and optimisation analysis of fundamental reform in practice," MPRA Paper 89703, University Library of Munich, Germany.
    2. Toshiyuki Uemura, 2021. "Evaluating Japan's Corporate Income Tax Reform using Firm-specific Effective Tax Rates," Discussion Paper Series 226, School of Economics, Kwansei Gakuin University.
    3. Kayis-Kumar, Ann, 2015. "Thin capitalisation rules: A second-best solution to the cross-border debt bias?," MPRA Paper 72031, University Library of Munich, Germany.
    4. Michele Bernini & Tania Treibich, 2013. "Killing a Second Bird with One Stone? Promoting Firm Growth and Export through Tax Policy," GREDEG Working Papers 2013-30, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.

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    More about this item

    Keywords

    Corporate taxation; exports; effective tax rates;
    All these keywords.

    JEL classification:

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

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