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Journals / Reforma / 2022 / Sayı: 93

GLOBALIZATION AND TAX COMPETITION IN CENTRAL ASIAN COUNTRIES

Raziiakhan ABDIEVA
Damira BAIGONUSHOVA
Journal
Reforma
Pages
45–53
Publication Date
2022-05-22
DOI
—
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

Empirical results showed that tax reforms cause an effect on the level of foreign direct investment inflow in all three countries.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:Higher mobility of capital and labor during the age of globalization has led to tax competition between countries.
📊
Key Findings & Data:Post-Soviet countries adopted tax law in a short period and during transition reduced tax rates, especially rates of corporate tax and income tax.
💡
Conclusion & Impact:Empirical results showed that tax reforms cause an effect on the level of foreign direct investment inflow in all three countries.
🔬Design:Research Article
📍Scope:2017 Verileri
⚙️Variables:foreign direct investment · tax policy · tax competition

Abstract

Higher mobility of capital and labor during the age of globalization has led to tax competition between countries. After the collapse of the USSR, with the liberalization of economies, all post-Soviet countries faced the globalization process. Post-Soviet countries adopted tax law in a short period and during transition reduced tax rates, especially rates of corporate tax and income tax. This paper analyzes the level of tax competition in selected Central Asian countries as Kyrgyzstan, Kazakhstan, and Uzbekistan by implementing Clemente-Montano-Reyes Unit Root Test. Foreign yearly direct investment inflow data and corporate tax rate between 1992-2017 was used. Empirical results showed that tax reforms cause an effect on the level of foreign direct investment inflow in all three countries. But, along with this, ensuring economic development and stability could have a more significant effect on the inflow of foreign direct investment.

Özet

Higher mobility of capital and labor during the age of globalization has led to tax competition between countries. After the collapse of the USSR, with the liberalization of economies, all post-Soviet countries faced the globalization process. Post-Soviet countries adopted tax law in a short period and during transition reduced tax rates, especially rates of corporate tax and income tax. This paper analyzes the level of tax competition in selected Central Asian countries as Kyrgyzstan, Kazakhstan, and Uzbekistan by implementing Clemente-Montano-Reyes Unit Root Test. Foreign yearly direct investment inflow data and corporate tax rate between 1992-2017 was used. Empirical results showed that tax reforms cause an effect on the level of foreign direct investment inflow in all three countries. But, along with this, ensuring economic development and stability could have a more significant effect on the inflow of foreign direct investment.

🔖

Cite This Article

ABDIEVA, R., BAIGONUSHOVA, D. (2022). GLOBALIZATION AND TAX COMPETITION IN CENTRAL ASIAN COUNTRIES. Reforma, Sayı: 93, 45–53. https://ajindex.com/articles/399530

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References (8)

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