<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This paper explores the tax burden - economic growth nexus. It advances an explanatory framework for the existence of such nexus. First, we argue that tax burden reduces the income remaining at the disposal of the private sector. Second, we empirically test for the existence of a non-linear impact of corporate tax burden on growth for a dataset of 21 OECD countries, for the period 1975 - 2012. We mostly involve mixed effects models with three levels of nested random effects. Our main empirical result consists in the evidences of a non-linear relation between corporate tax burden and economic growth.</p></abstract>

This paper explores the tax burden - economic growth nexus. It advances an explanatory framework for the existence of such nexus. First, we argue that tax burden reduces the income remaining at the disposal of the private sector. Second, we empirically test for the existence of a non-linear impact of corporate tax burden on growth for a dataset of 21 OECD countries, for the period 1975 - 2012. We mostly involve mixed effects models with three levels of nested random effects. Our main empirical result consists in the evidences of a non-linear relation between corporate tax burden and economic growth.

Does Corporate Tax Burden Affect Growth? Evidences from OECD Countries

Finance Department, Faculty of Economics and Business Administration

ECREB – East European Center for Research in Economics and Business, Faculty of Economics and Business Administration

Journal of Heterodox Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Does Corporate Tax Burden Affect Growth? Evidences from OECD Countries"}

This paper explores the tax burden - economic growth nexus. It advances an explanatory framework for the existence of such nexus. First, we argue that tax...

Does Corporate Tax Burden Affect Growth? Evidences from OECD Countries

Published Online: Feb 01, 2020

Page range: 51 - 80

DOI: https://doi.org/10.1515/jheec-2017-0004

Keywords
Tax burden, growth, mixed effects models, OECD, private sector

© 2017 Bogdan Dima et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Does Corporate Tax Burden Affect Growth? Evidences from OECD Countries

Published Online: Feb 01, 2020

Page range: 51 - 80

DOI: https://doi.org/10.1515/jheec-2017-0004

KeywordsTax burden, growth, mixed effects models, OECD, private sector

© 2017 Bogdan Dima et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Tax burden, growth, mixed effects models, OECD, private sector