The Relationship Between Corporate Tax Rate and Economic Growth During the Global Financial Crisis: Evidence from a Panel VAR
This paper compares dynamic relationship between economic growth and corporate tax rate during the recent financial crisis and the non-crisis period using a panel VAR for 29 OECD countries over the period 1998-2016. The results show that corporate tax rate has a significantly negative effect on economic growth. Moreover, the recent financial crisis has had a significant effect on the endogenous interaction between corporate tax rate and economic growth. According to Granger causality test, there is only one-way causality from corporate tax rate to economic growth during the non-crisis period. Interestingly, there are not any causal relationships between corporate tax rate and economic growth during the crisis period. The results show that the recent crisis has had a significant effect on the endogenous interaction between corporate tax rate and economic growth.
Year of publication: |
2019
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Authors: | Öz Yalaman, Gamze |
Published in: |
European Journal of Government and Economics (EJGE). - A Coruña : Universidade da Coruña, ISSN 2254-7088. - Vol. 8.2019, 2, p. 189-202
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Publisher: |
A Coruña : Universidade da Coruña |
Subject: | corporate tax | OECD countries | panel VAR |
Saved in:
freely available
Type of publication: | Article |
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Type of publication (narrower categories): | Article |
Language: | English |
Other identifiers: | 10.17979/ejge.2019.8.2.5074 [DOI] 1689524391 [GVK] hdl:10419/217780 [Handle] |
Classification: | H25 - Business Taxes and Subsidies ; F23 - Multinational Firms; International Business |
Source: |
Persistent link: https://www.econbiz.de/10012218013
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