The Macro-Economic Impact of Changing the Rate of Corporation Tax

Thomas Conefrey and John Fitzgerald ()

No WP273, Papers from Economic and Social Research Institute (ESRI)

Abstract: This paper considers the impact of changes in the rate of corporation tax in Ireland affecting the services sector. A model is estimated that relates services exports and output to world activity, competitiveness and the rate of corporation tax. This model indicates that a reduction in the rate of corporation tax in the 1990s stimulated exports and, even allowing for profit repatriations by foreign firms and replacement of lost tax revenue, it resulted in an increase in domestic output. The increase in profitability suggests that some of the increased output involved relocation of profits to Ireland by multinational firms.

Keywords: Corporation; tax/Ireland/Services; Sector/Ireland (search for similar items in EconPapers)
JEL-codes: F2 H25 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2009-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: The macro-economic impact of changing the rate of corporation tax (2011)
Working Paper: The Macro-economic Impact of Changing the Rate of Corporation Tax (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:esr:wpaper:wp273

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