Do Corporate Tax Cuts Boost Economic Growth?

Sebastian Gechert and Philipp Heimberger

No 201, wiiw Working Papers from The Vienna Institute for International Economic Studies, wiiw

Abstract: The empirical literature on the impact of corporate taxes on economic growth reaches ambiguous conclusions corporate tax cuts increase, reduce, or do not significantly affect growth. We apply meta-regression methods to a novel dataset with 441 estimates from 42 primary studies. There is evidence for publication selectivity in favour of reporting growth-enhancing effects of corporate tax cuts. Correcting for this bias, we cannot reject the hypothesis of a zero effect of corporate taxes on growth. Several factors influence reported estimates, including researcher choices concerning the measurement of growth and corporate taxes, and controlling for other budgetary components.

Keywords: Corporate income taxes; economic growth; meta-analysis (search for similar items in EconPapers)
JEL-codes: E60 H25 O40 (search for similar items in EconPapers)
Pages: 44 pages including 6 Tables and 4 Figures
Date: 2021-06
New Economics Papers: this item is included in nep-gro, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Do corporate tax cuts boost economic growth? (2022)
Working Paper: Do corporate tax cuts boost economic growth? (2021)
Working Paper: Do corporate tax cuts boost economic growth? (2021)
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