Taxes, mobile vapital, and rconomic fynamics in a globalising world

Lucas Bretschger

This contribution provides evidence for the hypothesis that trade increases growth through its curbing effect on capital taxes. The analysed trade-growth channel includes a negative impact of openness on corporate taxes and a negative effect of taxes on growth. The paper explores the two steps theoretically and empirically, taking into account the critical points of recent studies in this field. Estimations with panel data for a sample of 12 OECD countries in the period 1965-1999 confirm a significant and robust impact of trade on growth through corporate taxes.

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Year of publication:	[2008]
Authors:	Bretschger, Lucas
Publisher:	Zürich : CER-ETH - Center of Economic Research at ETH Zurich
Subject:	Trade and Growth \| Tax Competition \| Capital Taxes and Mobility \| OECD Countries \| Globalisierung \| Globalization \| Internationale Wirtschaft \| International economy \| Wirtschaftswachstum \| Economic growth \| Steuerwettbewerb \| Tax competition \| Unternehmensbesteuerung \| Corporate taxation \| Kapitalmobilität \| Capital mobility \| Schätzung \| Estimation \| OECD-Staaten \| OECD countries \| 1965-1999