This paper examines the empirical effect of corporate Income tax on GDP growth rate using historical data from 1951-2010 for Sweden. Economic theory postulates that corporate tax rates should significantly negatively affect GPD growth rate. Some past empirical works on cross-country panel data also supports this significantly negative correlation between growth rate and corporate tax. However, empirical works using country specific time-series data show deviations and contradictions to this conventional wisdom. Using time series data, I find that corporate income tax rates have no significant effect on Swedish economic growth.
Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:hj-17620 |
Date | January 2012 |
Creators | Forbin, James |
Publisher | Internationella Handelshögskolan, Högskolan i Jönköping, IHH, Nationalekonomi |
Source Sets | DiVA Archive at Upsalla University |
Language | English |
Detected Language | English |
Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
Format | application/pdf |
Rights | info:eu-repo/semantics/openAccess |
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