Corporate taxes and multi-product exporters: Theory and evidence from trade dynamics

Research output: Journal contributionsJournal articlesResearchpeer-review

Standard

Corporate taxes and multi-product exporters: Theory and evidence from trade dynamics. / Flach, Lisandra; Irlacher, Michael; Unger, Florian.
In: Journal of International Economics, Vol. 132, 103515, 09.2021.

Research output: Journal contributionsJournal articlesResearchpeer-review

Harvard

APA

Vancouver

Bibtex

@article{92ea97f76dd644dca4e48b0af020a51d,
title = "Corporate taxes and multi-product exporters: Theory and evidence from trade dynamics",
abstract = "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.",
keywords = "Corporate taxation, Exporter dynamics, International trade, Multi-product firms, Economics",
author = "Lisandra Flach and Michael Irlacher and Florian Unger",
note = "Publisher Copyright: {\textcopyright} 2021 Elsevier B.V.",
year = "2021",
month = sep,
doi = "10.1016/j.jinteco.2021.103515",
language = "English",
volume = "132",
journal = "Journal of International Economics",
issn = "0022-1996",
publisher = "Elsevier B.V.",

}

RIS

TY - JOUR

T1 - Corporate taxes and multi-product exporters

T2 - Theory and evidence from trade dynamics

AU - Flach, Lisandra

AU - Irlacher, Michael

AU - Unger, Florian

N1 - Publisher Copyright: © 2021 Elsevier B.V.

PY - 2021/9

Y1 - 2021/9

N2 - 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.

AB - 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.

KW - Corporate taxation

KW - Exporter dynamics

KW - International trade

KW - Multi-product firms

KW - Economics

UR - http://www.scopus.com/inward/record.url?scp=85111864902&partnerID=8YFLogxK

U2 - 10.1016/j.jinteco.2021.103515

DO - 10.1016/j.jinteco.2021.103515

M3 - Journal articles

AN - SCOPUS:85111864902

VL - 132

JO - Journal of International Economics

JF - Journal of International Economics

SN - 0022-1996

M1 - 103515

ER -

Recently viewed

Publications

  1. Defending one's worldview under mortality salience
  2. Erholung im Wald: Des einen Freud des anderen Leid
  3. The Three-Tiered Leuphana Model of Student Support
  4. Von der Frauen-Frage zum Vorsorgenden Wirtschaften
  5. Wie Nachhaltigkeit den Unternehmenserfolg steigert
  6. Von Besserwissern, Moralaposteln und Tugendwächtern
  7. Role of perceived importance in intergroup contact
  8. Integration of expertise or collaborative practice?
  9. Fabeln - ein prozess- und produktorientierter Zugang
  10. Die Einführung des Emissionshandels in Deutschland
  11. Putting sustainability into supply chain management
  12. Strategie und Führung des Wandels von Universitäten
  13. Factored MDPs for detecting topics of user sessions
  14. Symbole unserer Zeit und ihre formierenden Elemente
  15. Selbstorganisiertes Lernen mit Hilfe von Leittexten.
  16. Vermeidung von Lichtverschmutzung - Schutz der Nacht
  17. Friedrich Kittler und der »Mißbrauch von Heeresgerät«
  18. Sustainability communication: an integrative approach
  19. Police and political violence in the 1960s and 1970s
  20. The Conjuncture of “Corbynism” and the UK Labour Party
  21. Quality System Development at the University of Graz
  22. Umwelt und Natur ge(nder)lesen, ge(nder)hört, ge(nder)sehen?
  23. Kompetenzentwicklung im Kontext von Ethik und Konsum
  24. Frauenberufstätigkeit im Sozial- und Gesundheitswesen
  25. Prozessqualität oder pädagogische Beziehungsqualität
  26. Hochschulen und nachhaltige Entwicklung in der Region
  27. Of looking glasses, mirror neurons, culture, and meaning
  28. Wie Lehrerinnen und Lehrer auf das Kopftuch reagieren
  29. Demokratiekompetenz als berufliche Handlungskompetenz