Publication: The Effect of Corporate Taxes on Investment and Entrepreneurship
Loading...
Open/View Files
Date
2010
Published Version
Journal Title
Journal ISSN
Volume Title
Publisher
American Economic Association
The Harvard community has made this article openly available. Please share how this access benefits you.
Citation
Djankov, Simeon, Tim Ganser, Caralee McLiesh, Rita Ramalho, and Andrei Schleifer. 2010. The effect of corporate taxes on investment and entrepreneurship. American Economic Journal: Macroeconomics 2(3): 31-64.
Abstract
We present new data on effective corporate income tax rates in 85 countries in 2004. The data come from a survey, conducted jointly with PricewaterhouseCoopers, of all taxes imposed on "the same" standardized mid-size domestic firm. In a cross-section of countries, our estimates of the effective corporate tax rate have a large adverse impact on aggregate investment, FDI, and entrepreneurial activity. Corporate tax rates are correlated with investment in manufacturing but not services, as well as with the size of the informal economy. The results are robust to the inclusion of many controls. (JEL E22, F23, G31, H25, H32, L26)
Description
Other Available Sources
Research Data
Keywords
capital, investment, capacity, multinational firms, international business, capital budgeting, fixed investment and inventory studies, business taxes and subsidies including sales and value-added (VAT), fiscal policies and behavior of economic agents, entrepreneurship
Terms of Use
This article is made available under the terms and conditions applicable to Open Access Policy Articles (OAP), as set forth at Terms of Service