The impact of effective corporate tax rates on investment

Vista sencilla de ítem
dc.contributor.authorBallesteros, Sebastián
dc.contributor.authorGoda, Thomas
dc.contributor.eafitauthortogoda@eafit.edu.co
dc.coverage.spatialMedellín de: Lat: 06 15 00 N degrees minutes Lat: 6.2500 decimal degrees Long: 075 36 00 W degrees minutes Long: -75.6000 decimal degreeseng
dc.date.accessioned2020-06-25T14:17:48Z
dc.date.available2020-06-25T14:17:48Z
dc.date.issued2020-06-25
dc.description.abstractThere exists an intense debate about the effects of corporate tax cuts on the formation of private capital in the real sector. This paper studies the investment impact of the effective fiscal burden of firms during the period 1995-2014. To this end, in a first step national accounts data is used to calculate backward looking average Effective Corporate Tax Rates (ECTR) for 73 developed and developing countries. In a second step, a dynamic panel approach is employed to estimate the impact of the ECTR on private gross fixed capital formation and foreign direct investment inflows. The obtained results indicate that: (i) ECTR not only tend to be much lower than statutory corporate tax rates, but also have different dynamics over time; and (ii) there exists no clear statistically significant negative relationship between ECTR and private investment. Instead, private capital formation and FDI inflows are rather explained by economic growth, the persistence of investment spending, trade openness, and the quality of institutions. This finding is robust when alternative effective corporate tax rate measures or statutory corporate tax rates are consideredeng
dc.identifier.jelF21
dc.identifier.jelF32
dc.identifier.jelO11
dc.identifier.urihttp://hdl.handle.net/10784/16998
dc.language.isospaeng
dc.publisherUniversidad EAFITspa
dc.publisher.departmentEscuela de Economía y Finanzasspa
dc.rights.accessrightsinfo:eu-repo/semantics/openAccesseng
dc.rights.localAcceso abiertospa
dc.subject.keywordEffective tax ratesspa
dc.subject.keywordcorporate taxesspa
dc.subject.keywordinvestmentspa
dc.subject.keywordprivate gross fixed capital formationspa
dc.subject.keywordforeign direct investment (FDI)spa
dc.titleThe impact of effective corporate tax rates on investmenteng
dc.typeworkingPapereng
dc.typeinfo:eu-repo/semantics/workingPapereng
dc.type.hasVersiondrafteng
dc.type.localDocumento de trabajo de investigaciónspa

Archivos

Bloque original
Mostrando 1 - 1 de 1
No hay miniatura disponible
Nombre:
WP-2020-18-Thomas Goda.pdf
Tamaño:
1.22 MB
Formato:
Adobe Portable Document Format
Descripción:
Descargar
Bloque de licencias
Mostrando 1 - 1 de 1
No hay miniatura disponible
Nombre:
license.txt
Tamaño:
2.5 KB
Formato:
Item-specific license agreed upon to submission
Descripción:
Descargar

Colecciones

Documentos de trabajo 1 (working papers)