AFFECTS CORPORATE TAXATION ECONOMIC GROWTH? – DYNAMIC APPROACH FOR OECD COUNTRIES

  • Veronika Nálepová VŠB - Technical University of Ostrava
Keywords: corporate taxation, economic growth, growth models, dynamic panel, effective tax rate, OECD.

Abstract

This contribution deals with issues of corporate taxation in relation with economic growth. Its main objective is to quantify and analyse the relation of corporate taxation and economic growth using of OECD countries. The corporate tax rate is approximated by effective corporate tax rates such as corporate tax quota, marginal effective and average tax rates as determined by micro-forward looking approach and the alternative approach World Tax Index. The relation of taxation and economic growth is verified using an econometric model based on panel regression methods and tests using a dynamic panel. The model has shown a negative impact on economic growth for all six of the selected corporate tax approximators under the assumed significant level. A quantitatively higher negative impact has been verified in the case of labour taxation.

Author Biography

Veronika Nálepová, VŠB - Technical University of Ostrava
Department of National Economy, Faculty of Economics.

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Published
2017-12-31
Section
Articles