Munich Personal RePEc Archive

Global Corporate Income Tax Competition, Knowledge Spillover, and Growth

Maebayashi, Noritaka and Morimoto, Keiichi (2022): Global Corporate Income Tax Competition, Knowledge Spillover, and Growth.


Download (303kB) | Preview


In a two-country model of endogenous growth with international knowledge spillover, corporate income tax competition reproduces the second-best allocation attained by tax harmonization, despite complex externalities. This stems from the positive spillover effect across the border and free trading by Ricardian households in the global financial market. However, such a neutrality result does not hold in the extended model, which includes non-Ricardian households. The equilibrium tax rate under the corporate income tax competition can be excessively high or low, depending on the elasticity of the spillover effect to the share of the firms’ locations.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.