US corporate tax rate cuts: Spillovers to the Irish economy
Citation:
Clancy, Daragh. 'US corporate tax rate cuts: Spillovers to the Irish economy'. - Dublin: Journal of the Statistical and Social Inquiry Society of Ireland, Vol.48, 2018-19, pp102-141Download Item:
Abstract:
We examine spillovers to the Irish economy from US corporate income tax rate cuts and find they lead to a small but persistent increase in Irish economic output. Our analysis of the transmission channels shows that an increase in investment, employment and exports in the externally-financed industrial sector largely drives this expansion. We also find that output spillovers from US corporate income tax cuts are larger when there is slack in the Irish labour market. Our findings suggest that the changing structure of the Irish economy means any spillovers to real economic activity from the recent US corporate tax cuts could be relatively minor. However, the larger presence and shifting focus of foreign multinational corporations’ operations in Ireland means lessons from past US corporate tax cuts may be of limited value in predicting the effects of the recent US tax system reform.
Description:
(read before the Society, 21 February 2019 and 9 April 2019) Barrington Lecture
Author: Clancy, Daragh
Publisher:
Statistical and Social Inquiry Society of IrelandType of material:
Journal ArticleCollections
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Journal of the Statistical and Social Inquiry Society of Ireland;Availability:
Full text availableKeywords:
Corporate tax shocks, Cross-border spillovers, Irish economyISSN:
00814776Metadata
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