CORPORATE TAX POLICY AND INDUSTRY LOCATION WITH FULLY ENDOGENOUS PRODUCTIVITY GROWTH.

This paper considers how national corporate tax policy affects productivity growth through adjustments in geographic patterns of industry in a two‐country model of trade. With trade costs and imperfect knowledge spillovers between countries, production concentrates partially and innovation concentra...

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Publicado en:Economic Inquiry Vol. 56; no. 2; pp. 1136 - 1149
Autores principales: Davis, Colin, Hashimoto, Ken‐ichi
Formato: Artículo
Publicado: Wiley-Blackwell Apr2018
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: CORPORATE TAX POLICY AND INDUSTRY LOCATION WITH FULLY ENDOGENOUS PRODUCTIVITY GROWTH.
      aug:
        au:
          Davis, Colin
          Hashimoto, Ken‐ichi
        affil:
          Professor, The Institute for the Liberal Arts, Doshisha University, Kyoto, 602‐8580, Japan
          Associate Professor, Graduate School of Economics, Kobe University, Kobe, 657‐8501, Japan
      su:
        Taxation
        Production (Economic theory)
        Commerce
        Market entry
        Corporate taxes
      sug:
        subj:
          Taxation
          Production (Economic theory)
          Commerce
          Market entry
          Public Finance Activities
          Corporate taxes
      ab: This paper considers how national corporate tax policy affects productivity growth through adjustments in geographic patterns of industry in a two‐country model of trade. With trade costs and imperfect knowledge spillovers between countries, production concentrates partially and innovation concentrates fully in the country with the lowest tax rate. A rise in the international corporate tax differential accelerates productivity growth through an increase in the production share of the low‐tax country that improves knowledge spillovers from industry to innovation. The paper also investigates the relationship between the corporate tax differential and the level of market entry, and analytically characterizes the effects of changes in tax policy on national welfare. (<italic>JEL</italic> F43, O30, O40, R12)
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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