期刊名称：CORE Discussion Papers / Center for Operations Research and Econometrics (UCL), Louvain
出版年度：2008
卷号：1
出版社：Center for Operations Research and Econometrics (UCL), Louvain
摘要：Tax competition within the EU is fiercer than in the rest of the OECD with tax rates falling
rapidly. This paper analyzes tax responses of EU-15 countries to corporate tax changes in the
EU-10 new member states as a function of their proximity to these new member states. The
average corporate tax rate in the new member states has always been considerably lower than the
average in the EU-15 countries. Their entry into the EU eliminated capital barriers, allowing
firms to locate in one of the new EU-10 with full access to the European Market. Our results
indicate that EU-15 countries geographically closer to the new member states respond stronger to
corporate tax changes in these new member states. We use a theoretical and a spatial regression
framework to test the hypothesis that distance to a low tax region intensifies countries¡¯ tax
reaction functions.
