The Relationship Between Corporate Tax Rate and Economic Growth During the Global Financial Crisis: Evidence from a Panel VAR

European Journal of Government and Economics

Gamze Öz Yalaman¹ 

[1] Eskisehir Osmangazi University, Eskisehir, Turkey;

关键词: corporate tax;    OECD countries;    panel VAR;   

DOI  :  10.17979/ejge.2019.8.2.5074

来源: DOAJ

【 摘 要 】

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.

【 授权许可】

Unknown