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Gamze Öz Yalaman
Eskisehir Osmangazi University, Eskisehir, Turkey
Vol. 8 No. 2 (2019), Articles, pages 189-202
Submitted: Feb 26, 2019 Accepted: Jul 23, 2019 Published: Dec 17, 2019
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This paper compares dynamic relationship between economic growth and corporate tax rate during the recent financial crisis and the non–crisis period using a panel VAR for 29 OECD countries over the period 1998-2016. The results show that corporate tax rate has a significantly negative effect on economic growth. Moreover, the recent financial crisis has had a significant effect on the endogenous interaction between corporate tax rate and economic growth. According to Granger causality test, there is only one-way causality from corporate tax rate to economic growth during the non-crisis period. Interestingly, there are not any causal relationships between corporate tax rate and economic growth during the crisis period. The results show that the recent crisis has had a significant effect on the endogenous interaction between corporate tax rate and economic growth.

Article Details


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