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  • 1.
    Forbin, James
    Jönköping University, Jönköping International Business School, JIBS, Economics.
    Effects of Corporate Tax on Economic Growth: The Case of Sweden2012Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
    Abstract [en]

    This paper examines the empirical effect of corporate Income tax on GDP growth rate using historical data from 1951-2010 for Sweden. Economic theory postulates that corporate tax rates should significantly negatively affect GPD growth rate. Some past empirical works on cross-country panel data also supports this significantly negative correlation between growth rate and corporate tax. However, empirical works using country specific time-series data show deviations and contradictions to this conventional wisdom. Using time series data, I find that corporate income tax rates have no significant effect on Swedish economic growth.

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