Corporate taxes and multi-product exporters: Theory and evidence from trade dynamics
Publikation: Beiträge in Zeitschriften › Zeitschriftenaufsätze › Forschung › begutachtet
Authors
This paper analyzes how exporters are affected by corporate tax reforms in destination markets. We introduce tax policy in a trade model of multi-product firms and show that producers face tougher competition in export markets with lower corporate tax rates. This competitive effect induces firms to reduce the number of exported products and to skew their export sales towards the better performing varieties. We estimate the effects of corporate taxes on trade dynamics by exploiting policy reforms in 42 destination countries of exports during the period 2005–2012. Our results provide strong support for competitive effects of corporate taxation.
| Originalsprache | Englisch |
|---|---|
| Aufsatznummer | 103515 |
| Zeitschrift | Journal of International Economics |
| Jahrgang | 132 |
| Anzahl der Seiten | 27 |
| ISSN | 0022-1996 |
| DOIs | |
| Publikationsstatus | Erschienen - 09.2021 |
| Extern publiziert | Ja |
Bibliographische Notiz
Funding Information:
We are grateful to the editor Andrés Rodríguez-Clare and two anonymous referees for helpful comments and suggestions. Moreover, we would like to thank Carsten Eckel, Hartmut Egger, Peter Egger, Lionel Fontagné, Anna Gumpert, Andreas Haufler, Sebastian Krautheim, Valeria Merlo, Ariell Reshef, Farid Toubal, Georg Wamser and participants at seminars in Linz, Passau, PSE Paris, Würzburg, Trier, Tübingen, Groningen, and Munich, the ETSG in Bern, the FIW Research Conference in Vienna, the InsTED Workshop in Nottingham, the MaTax Conference in Mannheim, IIPF Annual Conference 2020, EEA Annual Conference 2020, and the Workshop IWB in Göttingen for their helpful comments. Part of this paper was written while Michael Irlacher was visiting UC San Diego, whose hospitality is gratefully acknowledged. The authors thank the German Research Foundation for financial support through CRC TRR 190 and DFG grant number EC 216/7-1. Elizaveta Filatova, Michael Riedmaier, and Lisa Scheckenhofer provided excellent research assistance.
Funding Information:
We are grateful to the editor Andr?s Rodr?guez-Clare and two anonymous referees for helpful comments and suggestions. Moreover, we would like to thank Carsten Eckel, Hartmut Egger, Peter Egger, Lionel Fontagn?, Anna Gumpert, Andreas Haufler, Sebastian Krautheim, Valeria Merlo, Ariell Reshef, Farid Toubal, Georg Wamser and participants at seminars in Linz, Passau, PSE Paris, W?rzburg, Trier, T?bingen, Groningen, and Munich, the ETSG in Bern, the FIW Research Conference in Vienna, the InsTED Workshop in Nottingham, the MaTax Conference in Mannheim, IIPF Annual Conference 2020, EEA Annual Conference 2020, and the Workshop IWB in G?ttingen for their helpful comments. Part of this paper was written while Michael Irlacher was visiting UC San Diego, whose hospitality is gratefully acknowledged. The authors thank the German Research Foundation for financial support through CRC TRR 190 and DFG grant number EC 216/7-1. Elizaveta Filatova, Michael Riedmaier, and Lisa Scheckenhofer provided excellent research assistance.
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