Taxation and economic sophistication: Evidence from OECD countries.
Journal
PloS one
ISSN: 1932-6203
Titre abrégé: PLoS One
Pays: United States
ID NLM: 101285081
Informations de publication
Date de publication:
2019
2019
Historique:
received:
26
03
2018
accepted:
24
02
2019
entrez:
21
3
2019
pubmed:
21
3
2019
medline:
4
12
2019
Statut:
epublish
Résumé
Taxation policies can explain the differences in countries' capacity to produce and export more sophisticated products. We develop a theoretical model considering elements from standard models of economic growth to highlight that a country's productive structure is implied by the appropriate fiscal policy that is necessary for the development of sophisticated products. We show that economies that rely less on capital relative to labor taxation tend to produce more complex products, while countries that rely more heavily on capital relative to labor taxation produce simple products. These relationships remain robust across alternative econometric specifications. Furthermore, we demonstrate the differential effect of a country's level of economic development on the nexus between the structure of taxation and economic sophistication. We show that the negative impact of capital taxes on economic sophistication becomes stronger for countries that are more developed.
Identifiants
pubmed: 30893329
doi: 10.1371/journal.pone.0213498
pii: PONE-D-18-09159
pmc: PMC6426228
doi:
Types de publication
Journal Article
Langues
eng
Sous-ensembles de citation
IM
Pagination
e0213498Déclaration de conflit d'intérêts
The authors have declared that no competing interests exist.
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