Shift from gross profit taxation to distributed profit taxation: Are there effects on firms?

Masso, Jaan; Meriküll, Jaanika; Vahter, Priit

doi:10.1016/j.jce.2013.01.011

Cited by 20 publications

(26 citation statements)

References 17 publications

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“…As discussed in the next section, the evidence we provide is consistent with that presented by Arnold et al (2011) and Masso et al (2013). Arnold et al (2011) find evidence that, for European firms, higher corporate taxes slow productivity growth in more profitable industries.…”

Section: Introductionsupporting

confidence: 88%

“…Arnold et al (2011) find evidence that, for European firms, higher corporate taxes slow productivity growth in more profitable industries. Masso et al (2013) find that, for Estonian firms, corporate tax cuts provoke a significant increase in investment spending, with the effect most pronounced among small firms.…”

Section: Introductionmentioning

confidence: 82%

“…Masso et al . () find that, for Estonian firms, corporate tax cuts provoke a significant increase in investment spending, with the effect most pronounced among small firms.…”

Section: Introductionmentioning

confidence: 94%

“…Masso et al . () use a significant change to corporate profit taxation in Estonia at the start of the century as a natural experiment. They find that compared to a counterfactual of firms in Latvia and Lithuania, the productivity and investment behaviour of small firms were particularly affected by changes to profit taxation that occurred.…”

Section: Previous Literature and Econometric Strategymentioning

confidence: 99%

See 3 more Smart Citations

Corporate Taxation and Productivity Catch‐Up: Evidence from European Firms

Gemmell

Kneller

McGowan

et al. 2018

Scandinavian J Economics

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In 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.

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Section: Introductionsupporting

confidence: 88%

Section: Introductionmentioning

confidence: 82%

“…Masso et al . () find that, for Estonian firms, corporate tax cuts provoke a significant increase in investment spending, with the effect most pronounced among small firms.…”

Section: Introductionmentioning

confidence: 94%

Section: Previous Literature and Econometric Strategymentioning

confidence: 99%

See 2 more Smart Citations

Corporate Taxation and Productivity Catch‐Up: Evidence from European Firms

Gemmell

Kneller

McGowan

et al. 2018

Scandinavian J Economics

View full text Add to dashboard Cite

show abstract

“…A similar approach has been used by Masso et al (2013), who estimated the outcomes of the Estonian corporate tax reform with DID analysis using firms from the other two Baltic countries, Latvia and Lithuania, as the control group for Estonian firms. Compared to a within-country micro-econometric evaluation this approach has the advantage of identifying the effects from a comparison of whole populations not just subgroups.…”

Section: Introductionmentioning

confidence: 99%

Relaxation of employment protection and labour reallocation

Malk

2014

International Journal of Manpower

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Purpose -Employment law reform enforced in Estonia in mid-2009 provides a good opportunity to examine the outcomes of employment protection legislation (EPL). The purpose of this paper is to evaluate the effects of the reduction in EPL on labour reallocation. Design/methodology/approach -The author exploits the micro-data of the Labour Force Survey to estimate the probabilities of one-year worker flows with probit models, and uses a difference in differences (DID) approach to identify the effects of the EPL reform. Findings -The author finds that the reduction in EPL seems to have increased the probability of transitions out of employment. At the same time, she does not find any significant effect of this reform on the probability of flows into employment. The evaluation also gives evidence of a lowered probability of job-to-job transitions resulting from the reduction in EPL.

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Export and productivity in global value chains: comparative evidence from Latvia and Estonia

et al. 2019

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This paper investigates the effect of export entry on productivity, employment and wages of Latvian and Estonian firms in the context of global value chain (GVC). Like in many countries, exporting firms in Latvia and Estonia are more productive, larger, pay higher wages and are more capital intensive than non-exporting firms. While this is partly because firms that are originally more productive and have better performances are more likely to enter export, Latvian and Estonian firms also realise more than 23% and 14% higher labour productivity level as the result of export entry. Export entry also increases employment and average wages. Gains in productivity and employment are particularly large when firms enter exports that are related to participation in knowledge-intensive activities found in the upstream of GVC. For instance, Latvian firms that start exporting intermediate goods or non-transport services (which include knowledge intensive services) enjoy significantly higher productivity gains than those starting to export final goods or transport services. These findings underscore the importance of innovation policies that strengthen firms' capabilities to supply highly differentiated knowledge-intensive goods and services to GVC.

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Shift from gross profit taxation to distributed profit taxation: Are there effects on firms?

Cited by 20 publications

References 17 publications

Corporate Taxation and Productivity Catch‐Up: Evidence from European Firms

Corporate Taxation and Productivity Catch‐Up: Evidence from European Firms

Relaxation of employment protection and labour reallocation

Export and productivity in global value chains: comparative evidence from Latvia and Estonia

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