An analysis of the corporate income tax policy of less developed countries

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

Unlike in developed countries, corporate rather than personal tax is the greater source of public finance for less developed countries (LDCs). This paper analyzes the corporate income tax policy for a large panel of LDCs. The analysis shows that although the corporate tax rate has been decreasing, corporate tax revenues have been increasing. Contrary to standard tax competition theory, there is also strong evidence that corporate income taxes are increasing with respect to the LDCs’ openness, as measured by capital mobility. The analysis also shows that the corporate tax rate is increasing with respect to the personal tax rate, as income-shifting theory predicts.

LanguageEnglish
Pages400–427
Number of pages28
JournalScandinavian Journal of Economics
Volume120
Issue number2
Early online date27 Feb 2017
DOIs
StatusPublished - 1 Apr 2018

Fingerprint

Corporate income tax
Less developed countries
Tax policy
Tax revenues
Corporate tax rates
Corporate tax
Personal taxes
Tax rate
Government revenue
Public finance
Tax competition
Income shifting
Capital mobility
Developed countries
Openness

Keywords

  • Corporate tax rates
  • corporate tax revenues
  • less developed countries

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

An analysis of the corporate income tax policy of less developed countries. / Baker, Paul L.

In: Scandinavian Journal of Economics, Vol. 120, No. 2, 01.04.2018, p. 400–427.

Research output: Contribution to journalArticle

@article{cd1348361b6e4c559238f6e51f35a00c,
title = "An analysis of the corporate income tax policy of less developed countries",
abstract = "Unlike in developed countries, corporate rather than personal tax is the greater source of public finance for less developed countries (LDCs). This paper analyzes the corporate income tax policy for a large panel of LDCs. The analysis shows that although the corporate tax rate has been decreasing, corporate tax revenues have been increasing. Contrary to standard tax competition theory, there is also strong evidence that corporate income taxes are increasing with respect to the LDCs’ openness, as measured by capital mobility. The analysis also shows that the corporate tax rate is increasing with respect to the personal tax rate, as income-shifting theory predicts.",
keywords = "Corporate tax rates, corporate tax revenues, less developed countries",
author = "Baker, {Paul L.}",
year = "2018",
month = "4",
day = "1",
doi = "10.1111/sjoe.12237",
language = "English",
volume = "120",
pages = "400–427",
journal = "Scandinavian Journal of Economics",
issn = "0347-0520",
publisher = "Wiley-Blackwell",
number = "2",

}

TY - JOUR

T1 - An analysis of the corporate income tax policy of less developed countries

AU - Baker, Paul L.

PY - 2018/4/1

Y1 - 2018/4/1

N2 - Unlike in developed countries, corporate rather than personal tax is the greater source of public finance for less developed countries (LDCs). This paper analyzes the corporate income tax policy for a large panel of LDCs. The analysis shows that although the corporate tax rate has been decreasing, corporate tax revenues have been increasing. Contrary to standard tax competition theory, there is also strong evidence that corporate income taxes are increasing with respect to the LDCs’ openness, as measured by capital mobility. The analysis also shows that the corporate tax rate is increasing with respect to the personal tax rate, as income-shifting theory predicts.

AB - Unlike in developed countries, corporate rather than personal tax is the greater source of public finance for less developed countries (LDCs). This paper analyzes the corporate income tax policy for a large panel of LDCs. The analysis shows that although the corporate tax rate has been decreasing, corporate tax revenues have been increasing. Contrary to standard tax competition theory, there is also strong evidence that corporate income taxes are increasing with respect to the LDCs’ openness, as measured by capital mobility. The analysis also shows that the corporate tax rate is increasing with respect to the personal tax rate, as income-shifting theory predicts.

KW - Corporate tax rates

KW - corporate tax revenues

KW - less developed countries

UR - http://www.scopus.com/inward/record.url?scp=85044431494&partnerID=8YFLogxK

U2 - 10.1111/sjoe.12237

DO - 10.1111/sjoe.12237

M3 - Article

VL - 120

SP - 400

EP - 427

JO - Scandinavian Journal of Economics

T2 - Scandinavian Journal of Economics

JF - Scandinavian Journal of Economics

SN - 0347-0520

IS - 2

ER -