xmlui.ArtifactBrowser.SimpleSearch.filter.source:Scientific papers of the University of Pardubice. Series D, Faculty of Economics and Administration. 42/2018
ISSN:ISSN 1211-555X (Print)
Abstract:
Market economy, capital mobility and heterogeneity of the tax system
currently creates strong pressure on investors in determining the location of investment.
The countries are attracting the foreign investors to increase their competitiveness and
attractiveness of tax. The aim of this paper is to assess tax competitiveness of new and
old member states in regards macroeconomic situation. Submitted contribution deals
with the issue of tax competition between the new and old EU Member States through
the economically transparent and effective categorization of the EU countries with
regard to the predetermined segmentation criteria using hierarchical Ward's method of
clustering. The final group of these multidimensional objects with characteristic
features were compared to each other and subjected to economic verification and
quantification of the impact of selected macroeconomic indicators to the overall amount
of tax revenues from the view of the tax competitiveness. Quantification was carried out
by means of regression analysis, the random and fixed effect models were used (pooling,
fixed effects and random effects model). The analysis confirmed that the differences are
particularly important in the level of nominal and effective corporate taxation between
the old and new EU Member States. The gross domestic product, employment and
foreign direct investment showed the biggest impact on the tax
revenues(strongcorrelation).