Does Corporate Tax Burden Affect Growth? Evidences from OECD Countries

This paper explores the tax burden - economic growth nexus. It advances an explanatory framework for the existence of such nexus. First, we argue that tax burden reduces the income remaining at the disposal of the private sector. Second, we empirically test for the existence of a non-linear impact of corporate tax burden on growth for a dataset of 21 OECD countries, for the period 1975 - 2012. We mostly involve mixed effects models with three levels of nested random effects. Our main empirical result consists in the evidences of a non-linear relation between corporate tax burden and economic growth.

Greece, Portugal, Spain: New evidence on the economic effects of military expenditure using the new SIPRI data

This article first compares old with newly updated and extended SIPRI military expenditure data for Greece, Portugal, and Spain. Using the new data to confirm or reject earlier findings, it then replicates a Solow growth model application employed in a 2012 study by Dunne and Nikolaidou. In addition, the article provides new evidence on the military expenditure–economic growth nexus for these three countries using the extended data that now cover the post-global financial crisis and European debt crisis years. The use of the new SIPRI data does not lead to rejection of the earlier findings for Greece and Portugal but does reject the formerly negative and statistically significant effect of military burden on growth for the case of Spain.