Prague Economic Papers 2008, 17(1):40-53 | DOI: 10.18267/j.pep.318

Impact of globalization on taxation mixes in oecd countries during 1965-2003

Květa Kubátová, Alena Vančurová, Michaela Foltysová
University of Economics, nám. W. Churchilla 4, CZ - 130 67 Praha 3 (kubatova@vse.cz).

The aim of the paper is to explore impact of globalization on the tax mixes of the OECD countries. The research object is the tax mix of 21 OECD member countries in the period 1965 - 2003. The relation of tax mixes and globalization, which expresses oneself through a tax competition, is analysed by methods of multidimensional statistical analysis. First, the cluster analysis enables us to identify countries` clusters (subgroups of the OECD group of countries) with similar tax mixes in the observed period. Consequently, the discriminatory analysis explains the reasons of the resulting grouping of the countries. Within the scope of the discriminatory analysis we take into account selected variables of globalization quantified on the basis of the globalization indices (economical, social and political index). The cluster and discriminatory analysis results confirm that the tax mixes in the OECD countries have been gradually approaching under the pressure of globalization.

Keywords: globalization, tax competition, tax mix, cluster analysis, discriminant analysis, OECD
JEL classification: H20

Published: January 1, 2008  Show citation

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Kubátová, K., Vančurová, A., & Foltysová, M. (2008). Impact of globalization on taxation mixes in oecd countries during 1965-2003. Prague Economic Papers, 17(1), 40-53. doi: 10.18267/j.pep.318
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