Convergence in corporate statutory tax rates in the Asian and Pacific economies
Convergence in corporate statutory tax rates in the Asian and Pacific economies
Countries in the Asia and Pacific region have shown many macroeconomic similarities during a period of economic integration. This paper argues that there may be one more macroeconomic feature to add to the list: strong statutory tax convergence. Using data on the statutory corporate tax rate in 15 countries from 1980 to 2014, we identify (i) a significant dynamic tax convergence pattern and (ii) three tax convergence clubs. The latter consist of the small tax haven economies of Hong Kong and Singapore, the East Asian countries (plus one) and the South and Southeast Asian and Oceania countries. These economies, within groups, have been reducing the tax gaps with their neighbours over time.
Asia and Pacific region, convergence clubs, economic integration, macroeconomics, non-linear models, tax policy
266-278
Chen, Yang
385f7643-6b3b-4b30-a57e-8c222afabaf3
Cuestas, Juan Carlos
e21c853f-d345-45d1-9a3c-40ef510a1e5f
Regis, Paulo José
d696452e-72ef-48bc-9409-80996e297ca7
Chen, Yang
385f7643-6b3b-4b30-a57e-8c222afabaf3
Cuestas, Juan Carlos
e21c853f-d345-45d1-9a3c-40ef510a1e5f
Regis, Paulo José
d696452e-72ef-48bc-9409-80996e297ca7
Chen, Yang, Cuestas, Juan Carlos and Regis, Paulo José
(2016)
Convergence in corporate statutory tax rates in the Asian and Pacific economies.
International Journal of Finance and Economics, 21 (3), .
(doi:10.1002/ijfe.1546).
Abstract
Countries in the Asia and Pacific region have shown many macroeconomic similarities during a period of economic integration. This paper argues that there may be one more macroeconomic feature to add to the list: strong statutory tax convergence. Using data on the statutory corporate tax rate in 15 countries from 1980 to 2014, we identify (i) a significant dynamic tax convergence pattern and (ii) three tax convergence clubs. The latter consist of the small tax haven economies of Hong Kong and Singapore, the East Asian countries (plus one) and the South and Southeast Asian and Oceania countries. These economies, within groups, have been reducing the tax gaps with their neighbours over time.
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e-pub ahead of print date: 15 February 2016
Keywords:
Asia and Pacific region, convergence clubs, economic integration, macroeconomics, non-linear models, tax policy
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Local EPrints ID: 434328
URI: http://eprints.soton.ac.uk/id/eprint/434328
ISSN: 1076-9307
PURE UUID: 2d5aff7e-a707-4eec-905d-f9452745e691
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Date deposited: 19 Sep 2019 16:30
Last modified: 16 Mar 2024 04:41
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Author:
Yang Chen
Author:
Juan Carlos Cuestas
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