An extensive literature on the convergence of productivity between countries examines whether productivity is pulled towards the global frontier country, perhaps due to learning and knowledge spillovers. More recently, studies within countries use the wide dispersion of productivity across firms...

This paper presents evidence of profit shifting in response to differences in corporate tax rates for a large selection of OECD countries. In our estimates we control for the effects of tax rate changes on real activity. Our baseline estimates suggest that, on average, a unilateral increase in...