Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/171468 
Year of Publication: 
2003
Series/Report no.: 
Economics Working Paper Series No. 03/24
Publisher: 
ETH Zurich, CER-ETH - Center of Economic Research, Zurich
Abstract: 
This contribution provides evidence for the hypothesis that trade increases growth through its curbing effect on capital taxes. The analysed mechanism includes two different steps and considers the critical points of both the theoretical and empirical studies in this field. In particular, the estimation problems of omitted variables and parameter heterogeneity are addressed. Using panel data for a sample of 12 OECD countries in the time period 1967-1996, it is shown that the theoretical predictions can be corroborated by empirical results.
Subjects: 
Trade and Growth
Tax Competition
OECD Countries
JEL: 
F43
O40
H71
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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