Heterogeneous firms, corporate taxes and export behavior: A firm-level investigation for Italy
Valentino Parisi and
Economic Modelling, 2020, vol. 88, issue C, 98-112
This paper analyses the effect of home corporate taxes on a firm’s decision to expand the scale of its activity through exports using a rich dataset on Italian firms. Starting out from the observation that firms’ export activity vary greatly among them and tend to be systematically related to firm’s characteristics, we relate differences in firms’ export choices to firm level incidence of corporate taxes. Our results suggest that (i) corporate taxes matter at both the extensive and the intensive margin and (ii) higher corporate taxes may increase the probability of new firms’ entry in the foreign market while they decrease the export intensity of incumbent exporters.
Keywords: Corporate taxation; Exports; Effective tax rates; Mark-up (search for similar items in EconPapers)
JEL-codes: H25 H32 F14 D22 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:88:y:2020:i:c:p:98-112
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