Do corporate tax cuts boost economic growth?

Arbeitspapier

The empirical literature on the impact of corporate taxes on economic growth reaches ambiguous conclusions: corporate tax cuts increase, reduce, or do not significantly affect growth. We apply meta-regression methods to a novel dataset with 441 estimates from 42 primary studies. There is evidence for publication selectivity in favour of reporting growth-enhancing effects of corporate tax cuts. Correcting for this bias, we cannot reject the hypothesis of a zero effect of corporate taxes on growth. Several factors influence reported estimates, including researcher choices concerning the measurement of growth and corporate taxes, and controlling for other budgetary components.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: FMM Working Paper ; No. 65

Classification and Topics

• Classification: Wirtschaft ; Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General ; Business Taxes and Subsidies including sales and value-added (VAT) ; Economic Growth and Aggregate Productivity: General
• Subject: Corporate income taxes ; economic growth ; meta-analysis

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gechert, Sebastian ; Heimberger, Philipp
• Event: Veröffentlichung
• (who): Hans-Böckler-Stiftung, Macroeconomic Policy Institute (IMK), Forum for Macroeconomics and Macroeconomic Policies (FMM)
• (where): Düsseldorf
• (when): 2021

Further information

• Handle: http://hdl.handle.net/10419/246830
• Last update: 10.03.2025, 11:44 AM CET