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Small Business Economics

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31.01.2019

Is the corporation tax a barrier to productivity growth?

verfasst von: Desiderio Romero-Jordán, Ismael Sanz-Labrador, José Félix Sanz-Sanz

Erschienen in: Small Business Economics | Ausgabe 1/2020

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Abstract

Evidence shows that size matters in terms of productivity. Within this literature, this paper analyses whether corporation tax penalises the productivity growth of smaller enterprises (SEs) (< 20 workers). For this purpose, we use a sample of Spanish manufacturing companies for the period 1996 to 2009. Results show that corporation tax has a negative effect upon productivity growth in companies with the greatest profitability, whether large or small. However, in relative terms, this barrier is greater for SEs. The results therefore show that corporation tax prevents the SMEs in Spain from improving their low productivity.

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Titel: Is the corporation tax a barrier to productivity growth?
verfasst von: Desiderio Romero-Jordán
Ismael Sanz-Labrador
José Félix Sanz-Sanz
Publikationsdatum: 31.01.2019
Verlag: Springer US
Erschienen in: Small Business Economics / Ausgabe 1/2020
Print ISSN: 0921-898X
Elektronische ISSN: 1573-0913
DOI: https://doi.org/10.1007/s11187-019-00136-x

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