Work detail

Economic Globalization and Tax Systems

Author: Mgr. Václav Toman
Year: 2014 - summer
Leaders: doc. Ing. Ondřej Schneider MPhil., Ph.D.
Work type: Finance, Financial Markets and Banking
Language: English
Pages: 83
Awards and prizes:
Abstract: In this thesis on the effect of globalization on corporate income tax policies, we try to
provide evidence that given the globalization-induced increased tax competition,
countries are forced to lower their level of corporate income tax burden down to
unsustainable levels or that they at least converge in their policies and levels of tax
burden in order to attract international corporations through transparency. We find
that no evidence to support such hypotheses is present in the OECD panel data of the
last four decades with descriptive analysis, the general method of moments and the
fixed effects estimation and we even find local evidence of an increase in the
corporate income tax burden. Moreover, the OECD countries do not exhibit stronger
convergence in their corporate income tax policies. Apart from the analysis of the
general development of the corporate income tax burden, we find evidence that the
level of tax burden is affected by the ratio of exports in the economy and correlated
with the government indebtedness, outward FDI and the occurrence of the recent
financial crisis.




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