Tax Competition in an Expanding European Union

Ronald Davies and Johannes Voget ()
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Johannes Voget: Johannes Voget, Mannheim University, Oxford University Centre for Business Taxation , CentER Tilburg University. L9,7, 68131 Mannheim, Germany

No 33, GEE Papers from Gabinete de Estratégia e Estudos, Ministério da Economia

Abstract: This paper empirically examines whether expansion of the EU has increased international tax competition. To do so, we use a market potential weighting scheme to estimate the slope of best responses. We find robust evidence for tax competition. In particular, our estimates suggest that EU membership affects responses with EU members responding more to the tax rates of other members. This lends credence to the above noted concerns.

Keywords: Tax Competition; Foreign Direct Investment; Spatial Econometrics (search for similar items in EconPapers)
JEL-codes: F1 F2 H2 H7 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2010-12, Revised 2011-01
New Economics Papers: this item is included in nep-acc, nep-eec, nep-eur, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
https://www.gee.gov.pt/RePEc/WorkingPapers/GEE_PAPERS_33.pdf First version, 2011 (application/pdf)

Related works:
Working Paper: Tax Competition in an Expanding European Union (2009)
Working Paper: Tax Competition in an Expanding European Union (2008)
Working Paper: Tax competition in an expanding European Union (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:mde:wpaper:0033

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