2026-06-30T20:34:24Zhttps://docta.ucm.es/rest/oai/request

oai:docta.ucm.es:20.500.14352/190472023-08-25T16:54:59Zcom_20.500.14352_14col_20.500.14352_15

Corporate Taxation and Productivity Catch-Up: Evidence from European firms Gemmell, Norman Kneller, Richard McGowan, Danny Sanz, Ismael Sanz Sanz, José Félix D24 H25 L11 O31 Convergence Firms Productivity Taxation Desarrollo económico Economía pública Microeconomía Economía industrial 5307.03 Modelos y Teorías del desarrollo Económico 5307.04 Estudios del desarrollo Económico 5307.15 Teoría Microeconómica In this paper, we explore whether higher corporate tax rates, because they lower the after-tax returns to productivity-enhancing investments, reduce the speed with which small firms converge to the productivity frontier. Using data for 11 European countries, we find evidence that their productivity catch-up is slower when the statutory corporate tax rates are higher. In contrast, we find that large firms are instead affected by effective marginal rates. Using the reduced-form model of productivity convergence of Griffith et al. (2009, Journal of Regional Science 49, 689–720), our results are robust to a host of robustness checks and a natural experiment that exploits the 2001 German tax reforms. Ministerio de Economía y Competitividad (MINECO) Depto. de Economía Aplicada, Pública y Política Fac. de Ciencias Económicas y Empresariales TRUE pub 2023-06-17T23:56:16Z 2023-06-17T23:56:16Z 2018 journal article https://hdl.handle.net/20.500.14352/19047 0347-0520 10.1111/sjoe.12212 eng (ECO2012-35572) restricted access application/pdf Wiley-Blackwell