Gemmell, NormanKneller, RichardMcGowan, DannySanz, IsmaelSanz Sanz, José Félix2023-06-172023-06-1720180347-052010.1111/sjoe.12212https://hdl.handle.net/20.500.14352/19047In 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.engjournal articlehttps://doi.org/10.1111/sjoe.12212restricted accessD24H25L11O31ConvergenceFirmsProductivityTaxationDesarrollo económicoEconomía públicaMicroeconomíaEconomía industrial5307.03 Modelos y Teorías del desarrollo Económico5307.04 Estudios del desarrollo Económico5307.15 Teoría Microeconómica