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Convergence tests on tax burden and economic growth among China, Taiwan and the OECD countries

✍ Scribed by David Han-Min Wang


Book ID
103882653
Publisher
Elsevier Science
Year
2007
Tongue
English
Weight
270 KB
Volume
380
Category
Article
ISSN
0378-4371

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✦ Synopsis


The unfolding globalization has profound impact on a wide range of nations' policies including tax and economy policies. This study adopts the time series and cluster analyses to examine the convergence property of tax burden and per capita gross domestic product among Taiwan, China and the OECD countries. The empirical results show that there is no significant relationship between the integration process and fiscal convergence among countries. However, the cluster analyses identify that the group of China, Taiwan, and Korea was stably moving toward one model during the 1970s, 1980s and 1990s. And, the convergence of tax burden is found in the group, but no pairwise convergence exists.