Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/203123
Authors: 
Flach, Lisandra
Irlacher, Michael
Unger, Florian
Year of Publication: 
2019
Series/Report no.: 
cege Discussion Papers 380
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 45 destination countries of exports during the period 2005-2012. Our results provide strong support for competitive effects of corporate taxation.
Subjects: 
multi-product firms
corporate taxation
exporter dynamics
international trade
JEL: 
H25
F12
L11
Document Type: 
Working Paper

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