Effects of Corporate Tax on Economic Growth: The Case of Sweden
Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
This paper examines the empirical effect of corporate Income tax on GDP growth rate using historical data from 1951-2010 for Sweden. Economic theory postulates that corporate tax rates should significantly negatively affect GPD growth rate. Some past empirical works on cross-country panel data also supports this significantly negative correlation between growth rate and corporate tax. However, empirical works using country specific time-series data show deviations and contradictions to this conventional wisdom. Using time series data, I find that corporate income tax rates have no significant effect on Swedish economic growth.
Place, publisher, year, edition, pages
2012. , 28 p.
Corporate tax, economic growth, distortions
IdentifiersURN: urn:nbn:se:hj:diva-17620OAI: oai:DiVA.org:hj-17620DiVA: diva2:495706
UppsokSocial and Behavioural Science, Law
Klaesson, JohanLarsson, Johan P