Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/217780 
Year of Publication: 
2019
Citation: 
[Journal:] European Journal of Government and Economics (EJGE) [ISSN:] 2254-7088 [Volume:] 8 [Issue:] 2 [Publisher:] Universidade da Coruña [Place:] A Coruña [Year:] 2019 [Pages:] 189-202
Publisher: 
Universidade da Coruña, A Coruña
Abstract: 
This paper compares dynamic relationship between economic growth and corporate tax rate during the recent financial crisis and the non-crisis period using a panel VAR for 29 OECD countries over the period 1998-2016. The results show that corporate tax rate has a significantly negative effect on economic growth. Moreover, the recent financial crisis has had a significant effect on the endogenous interaction between corporate tax rate and economic growth. According to Granger causality test, there is only one-way causality from corporate tax rate to economic growth during the non-crisis period. Interestingly, there are not any causal relationships between corporate tax rate and economic growth during the crisis period. The results show that the recent crisis has had a significant effect on the endogenous interaction between corporate tax rate and economic growth.
Subjects: 
corporate tax
OECD countries
panel VAR
JEL: 
H25
F23
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article

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