Higher Tax Research Articles

Сравнительная картина и проблемы иностранного портфельного инвестирования в реальном секторе экономики / Comparative picture and problems of foreign portfolio investment

The article is devoted to the comparative picture and problems of foreign portfolio investment in the real sector of the economy. The article analyzes the main obstacles that arise in the process of attracting foreign portfolio investments. The factors influencing the increase in the flow of foreign portfolio investments, the possibility of their rapid attraction and effective distribution are considered. Sustainable development of the economy of any country today is impossible without active participation in world economic relations. Along with international trade, international flows of investment capital, carried out on the basis of effective cooperation between countries, are becoming increasingly important. In recent years, the issue of attracting external capital to the Armenian economy has become topical. Foreign investment is one of the most important conditions for stabilization and growth of the country's economy. This is primarily due to the fact that firms’ own financial resources are limited, which is due to a number of reasons in Armenian reality, such as high return on invested capital, high taxes, etc. The movement of global financial capital through the channels of the global financial system occurs in various forms, among which international portfolio investments, including investments in equity and debt securities, occupy a special place. Financial globalization is accelerating the trend towards expanding the market segment of international portfolio investments.

Corruption and supply-side economics

This paper develops a model of the effects of tax rates chosen optimally to promote growth and public welfare in the face of corruption. For a given level of corruption, public spending can promote growth but high tax rates in pursuit of various social goals have potentially significant supply-side economics effects that reduce income. Governments faced with rampant corruption optimally choose low tax rates, thus associating poor countries with low tax rates, and confounding the observed relation between tax rates and income. The model is estimated using cross-country data on income, tax rates, and corruption and is shown to match key features of the data. The chief contribution of this paper is to stress the importance of jointly considering the effects of corruption and taxation in documenting evidence in support of supply-side economics.

On the acceptance of high carbon taxes in low- and middle-income countries: a conjoint survey experiment

Abstract Changing consumption patterns from growing middle-classes with consequent rising energy use and emissions in low- and middle-income countries (LMICs) present key challenges for the energy transition and climate change mitigation. Carbon taxes are an effective policy instrument to counter these developments, yet concerns about low public acceptability hinder their introduction. Here, we seek to fill a research gap and identify publicly acceptable carbon tax designs in LMICs. We provide novel evidence from three conjoint experiments with 2700 middle-class respondents in Ghana, Peru, and the Philippines. We show that overall, the majority in all three countries supports even high taxes of USD-PPP 75/tCO2 per year, irrespective of specific policy design features. The support for a very high tax rate is especially high if revenues are recycled for environmental purposes. Thus, governments in LMICs have political leeway to finance the transition to a low-carbon economy via carbon taxes. Moreover, revenue recycling for the poorest receives high support from important subgroups. These insights are crucial to achieving an effective, acceptable, and just carbon tax policy design.

Determinants of Non-Hydro Renewable Energy Consumption in China’s Provincial Regions

This study investigates the determinants of non-hydro renewable energy (NHRE) consumption across 31 provincial regions in China, spanning from 2015 to 2022. Utilizing fixed effects and moderating effects, the research analyzes the impacts of research and development intensity (RDI), urbanization (UR), and human capital (HC) on NHRE consumption (NHREC). Additionally, the moderating roles of industrial structure (IS) and tax (TA) are examined, along with control variables such as informationization and economic development. The findings reveal that increased RDI significantly boosts NHREC by enhancing technological advancements. UR also positively affects NHREC, particularly in rapidly urbanizing regions, while HC provides a skilled workforce that drives renewable energy projects. However, the study identifies that concentrated industrial structures and high taxes can negatively moderate these positive impacts, highlighting the complex interplay of these factors. Policy recommendations include creating “Renewable Energy Innovation Hubs” in underdeveloped regions to attract startups and researchers, developing “Solar Cities” with mandated solar panels on all buildings, and introducing a “Carbon Offset Lottery” to incentivize investments in renewable energy.

Designing China's environmental tax schemes from the perspective of differential tax rates

The Environmental Protection Tax Law of the People's Republic of China was promulgated in 2018. However, it is uncertain whether the tax rates defined under the law are reasonable. Environmental tax reform would help the government improve the law's emission reduction effect. This paper aims to design tax schemes from the perspective of differential tax rates and propose environmental tax reform strategies. To support this goal, we adopted a directional distance function, meta-frontier analysis, and an exponential attenuation model to construct a differential tax rate model. Next, starting with the current differential provincial tax rates (scheme B), we proposed three-level differential tax rates, in which the adjusted provincial tax rates (scheme P), differential sector tax rates (scheme S), and differential province–sector tax rates (scheme P–S). Then, we analyzed three new tax schemes and proposed two step-by-step reform strategies. We selected SO2, NOx, and CO2 for empirical analysis. We found that in the short term, the government should prioritize scheme P and set more effective tax rates for SO2 and NOx. In the long term, the government should implement scheme P–S to consider both regional heterogeneity and industrial heterogeneity within a province. Specific measures should set a high tax rate for the light industry category and a low tax rate for energy production and heavy industry category. In addition, we propose that China should include a carbon tax in the scope of its environmental taxes. Our research provides valuable guidance for China's future environmental tax reform.

Analysis of the Alcohol Industry’s Corporate Social Responsibility Practices in Portugal

Introduction: In Portugal, the alcohol industry (AI) engages in corporate political activity, influencing decision-making and potentially obstructing the implementation of evidence-based alcohol policies, such as higher taxes, stricter advertising laws, and mandatory warning labels on all alcoholic beverages. Yet, no research has been conducted specifically on the industry’s corporate social responsibility activities (CSR), which can also hinder the implementation of these cost-effective policies while serving as a means for nurturing its reputation. Methods: This study addresses this gap by examining the CSR practices of ten AI actors in Portugal. Through qualitative content analysis, data collected from their websites was categorized based on an adapted framework considering seven CSR categories. Results: The results revealed CSR practices across all categories, with corporate philanthropy and alcohol information provision and education accounting for 65% of the analyzed data. The findings highlight potential conflicts between the public health initiatives of AI in Portugal and its profit-driven objectives. Conclusion: CSR activities undermine health protection and alcohol harm prevention efforts by promoting a dubious discourse about an undeniably harmful substance. The present study recommends considering vigilant monitoring, regulation, or even the ban on CSR practices of AI in Portugal.

Impact of debt maturity and cash holding on investment decisions in Vietnamese companies

The study used data from 520 listed firms between 2004 and 2020 to ascertain the relationship between debt maturity, cash holding, and investment decisions in Vietnamese enterprises. The use of more conservative tactics results from the rise in agency costs. Increased cash holding encouraged businesses to employ internal resources to reduce external financing risks, favorably impacting investment decisions. The negative link between investment decisions and intangible assets indicates increased external funding costs. A high tax shield benefited the investment since it freed up financial flows for productive assets. The robustness test revealed that cash holding positively corresponds with investment decisions in consumer and technology enterprises and that technology firms are incredibly responsive to changes in debt maturity.

The effect of taxation on Moroccan FDI in African countries: an empirical analysis using panel data

ABSTRACT The paper aims to analyse the impact of taxation policies in African countries on Moroccan foreign direct investment (FDI) using panel data from 29 African countries spanning the period 2005–2021, employing the Estimated Generalized Least Squares estimation method. The findings suggest that high total tax, profit tax, and other tax rates deter Moroccan multinational enterprises (MNEs) from investing in African countries. Conversely, fiscal incentives and reduced tax rates positively influence Moroccan FDI in African countries. Additionally, the results indicate that a high score for tax payment and tax rates positively influences Moroccan FDI in African countries, implying that high-quality taxation policies encourage Moroccan MNEs to invest in African economies. Furthermore, the study finds that the GDP of African economies positively moderates the effect of taxation on Moroccan FDI behaviour. This suggests that the larger the market size of a country, the less severe the negative impact of taxation on FDI.

The health situation in the cities of Southern Kurdistan in the nineteenth century

The content of this research talks about the health situation in the cities of southern Kurdistan in the nineteenth century, which its population was suffering from poverty, back wardness illiteracy, destruction, high taxes rates and bad political conditions, due to the bad economic, social and political circumstances, beside these, a variety of dangerous diseases like (plague, cholera, malaria, fever, diarrhea and vomiting.) had spread in (Sulaimani, Kirkuk, Hawler, Ramanduz, Amedi) durnng the years (1820, 1821, 1830, 1831,1832, 1845, 1865, 1871, 1889, 1900 …), which caused great economic, social, political losses and health disasters. sometimes they caused the death of nearly half of these cities population. Low health awareness and lack of health service forced the inhabitants of these areas to resort to alternative medicine, magic and sorcery and the shrine of the righteous. The indifference and neglecting of the health sector by Ottoman Empire caused frequent health disasters, despite the fact that the Ottoman state had opened several hospitals and quarantine centers in both cities Sulaimani and Kirkukein the seventieth of the nineteenth century , but they were not provided enough budget as compared to the military sectors , the laste money was allocated for the helth sector, no hospitals or governmental health centers were found in cities like Hawler , Koya , Rawandz and the Amedi tell the beginning of the twenentieth century.

Actualization of Indonesian Economic and Cultural Development Reviewed from Ibn Khaldun's Thoughts

The problem of poverty in Indonesia is very complex which can trigger economic and socio-cultural problems, namely that there is a poor population of 9.36 percent. This indicates that prosperity has not been achieved in economic development in Indonesia. Ibnu Khaldun explained that a developed country is determined by the strength of the government implementing sharia and justice which is implicitly in accordance with the ideals of national development in Indonesia. The aim of this research is to analyze the actualization of Indonesia's economic development in terms of Ibnu Khaldun's thoughts. The research method used is qualitative library research sourced from secondary data using library research techniques from Muqaddimah books, journal articles and various kinds of relevant library materials which are then analyzed using descriptive analysis methods. The results of this research are that Indonesia's economic development has not yet achieved economic and socio-cultural balance as stated by Ibnu Khaldun. This is based on an imbalance between state revenues and government expenditure. The high taxes imposed on the public cannot yet be directly proportional to state spending which should be able to reduce inequality, poverty and so on, especially in underdeveloped areas.

Peran Mediasi Tax Knowledge dalam Hubungan Tax Education dan Tax Compliance

This research examines tax education which influences tax knowledge with the mediation of tax knowledge. Data from a survey of 130 individual taxpayers in Samarinda who had taken taxation courses through formal tertiary level education were analyzed using smartPLS, which produces findings that tax education and tax knowledge have a significant and positive effect on tax compliance, tax education has a significant and positive effect on tax knowledge, and tax education has a significant and positive effect on tax compliance through tax knowledge which is partial mediation. This research results in empirical evidence regarding the importance of tax education in increasing tax compliance. High tax compliance will help the government in terms of funding to carry out work programs that can ultimately improve people’s lives.

The Role of Entrepreneurship in the Economic Development of Ghana: Evidence from the Mfantseman Municipality of Ghana

The study examines the characteristics, challenges and the role of entrepreneurship in the economic development of the Mfantseman Municipality of Ghana. Descriptive research design was utilsed for the study and qestionnaire was distributed to 100 participants. The data was analyzed into descriptive statistics such as percentages and frequencies into tables and charts using Microsoft excel. The results from the study demonstrated that, majority of the entrepreneurs in the Municipality engaged in service rendering activities and have been in operation for 6-10 years. Moreover, it was revealed that entrepreneurs are faced with the challenges of limited access to finance, limited access to market, inadequate support from government, low demand, high taxes, inadequate equipment and technology and electricity power outage in their operations. Finally, it was discovered that entrepreneurs in the Mfantseman Municipality have played a tremendous role in the economic development of the municipality by creating employment avenues, reducing poverty and contributing to the GDP in the economy. The study recommended that the National Board for Small Scale Industries (NBSSI) should collaborate with the government to provide these entrepreneurs with the needed technologies and funds. The study is aimed to fill a gap in literature in the area of entrepreneurship in the economic development in Ghana.

Corporate tax, R&D and export decisions: Evidence from European firms

AbstractThe paper presents a unified framework for analyzing the impact of corporate taxation on R&D and exporting, considering firm productivity heterogeneity and sunk costs. We empirically examine three hypotheses using data from 7819 European firms spanning 2001–2014. We propose that: (a) an increase in corporate tax reduces the likelihood of innovation, (b) an increase in corporate tax reduces the likelihood of exporting, and (c) firms that innovate are more likely to enter foreign markets. On average, a high Effective Average Tax Rate (EATR) lowers the probability of investing in R&D and exporting by 2.3% and 1.41%, respectively. For firms with low Total Factor Productivity (TFP), the adverse effect of taxation on R&D investment ranges from 3.71% in our baseline analysis to 12.9% in our sensitivity analysis. Interestingly, while EATR positively influences the export decisions of high‐TFP firms, a higher EATR can reduce the export probability by up to 25.5% for firms at the lower end of the TFP distribution. Our findings demonstrate a causal relationship between firm heterogeneity and their capacity to mitigate the distortions caused by higher taxes. From a policy perspective, our results suggest that fostering innovation is essential for firms aiming to expand into international markets.

Unveiling and speculators in Addis Ababa: Insights, recommendations, and economic implications for sustainable development

<p>Land speculation poses a significant challenge in Ethiopia, particularly in urban and peri-urban areas where large acquisitions and land scarcity prevail. This study aims to discern land speculators in Addis Ababa by employing the motivation and scale method to optimize societal benefits. Employing a multi-sourced data approach and triangulation techniques, this research enhances data reliability. Primary data sourced from interviews, focus groups, and field surveys, supplemented by secondary data from various literature, spanning October 2021 to January 2023, forms the basis of the analysis. Results indicate that affluent individuals, brokers, bankers, and local government officials dominate land speculation activities in both urban core and periphery areas of Addis Ababa, perpetuating the unfair exclusion of lower-income groups from land ownership. To address this issue, three key recommendations are proposed: implementing a one-person, one-plot statute, imposing high property value taxes, and enforcing temporal restrictions on land development. Additionally, exploring the economic and business ramifications of these recommendations on investment patterns and market dynamics is crucial for ensuring their sustained effectiveness in fostering sustainable development.</p>

Earnings Management, Tax Avoidance, and Profitability Among MNC’s in Indonesia

The study examines the influence of earnings management and tax avoidance on the profitability of parent multinational companies in Indonesia, except the financial sector, actively listed on the Indonesia Stock Exchange during the research period. The research period used in this study starts from January 1, 2019, to December 31, 2022. The research results were processed using panel data regression, the best model regression was random effect model. One independent variable, earnings management, was found not to significantly affect profitability. However, the study found that the level of tax avoidance has a positive and significant impact on company profitability. The size of the board of commissioners' independence as a moderating variable did not strengthen or weaken the independent variables simultaneously or partially against company profitability, but independence board of commissioners could significantly affect on profitability as independent variables. This is a quantitative research with hypothesis testing. The implications of this study state that there is a high tax aggressiveness in Indonesia due to the actions of multinational companies in global transactions, thus recommending that the government further evaluate current international tax policies.

How can the lead industry improve sustainability based on the resource-economy-carbon nexus system?

The sustainability of the lead industry is threatened by pressures from resource depletion, slowing economic growth, and increasing carbon emissions. Exploring the linkages between resource, economy and carbon to promote synergies between them is essential to achieving sustainability. This study constructed a complex system driven by resource, economy, and carbon by utilizing system dynamics, agent-based model, and life cycle assessment, and further developed resource-economy‑carbon nexus model to evaluate the coordinated sustainability of the lead industry. The results show that due to the impact of carbon neutrality, China's lead demand will rapidly decline after reaching a peak of 7.0 million tonnes in 2028. The widening lead supply-demand gap will result in falling lead prices, thus lowering the economy index. Meanwhile, the decline in lead demand and the increase in the proportion of secondary lead will increase the resource index and carbon index. Such uneven developments between resource, economy, and carbon will constrain rapid growth in coordinated sustainability, which is expected to grow weakly after 2030. To improve the coordinated sustainability of the lead industry, we suggest advancing the substitution of lead-acid batteries as soon as possible before 2030, fully utilizing the advantages of low-intensity substitution after 2030, and introducing a carbon tax while avoiding high taxation rates after 2040.

Who are the early adopters of alternative fuel technology? A study of Swedish road freight companies

This study investigates the effect of three key firm characteristics (diversification, size, and age) on road freight companies’ early adoption of alternative fuel vehicles (AFVs). While previous studies have identified the determinants of the adoption intention of AFVs, a gap in the literature is research into firm characteristics and the early adopters of AFVs. Because early adopters play an important role in the diffusion of innovation, it is imperative to fill this gap. Based on a survey of 156 Swedish road freight companies and logistic regression analyses, we report that firm size and diversification affect the early adoption of AFVs. In addition, the partial impact of the importance of driver comfort and payload capacity on early adoption of AFVs has been reported. Other factors, including purchase price, fuel cost, and truck refueling efficiency, were not found to discriminate early adopters of AFVs from those who had not yet adopted AFVs. These findings imply to policymakers that the current instruments in use in Sweden, including the greenhouse gas mandate and the relatively high taxation on diesel fuel, have led to the adoption of AFVs by larger road freight companies. For vehicle producers aiming to scale up the production and sales of AFV, the findings suggest the benefit of targeting diversified and larger road freight companies in the first place.

Boosting Tax Compliance through Education in Indonesia

This study examines the factors affecting boarding house tax compliance in Candi District, Sidoarjo Regency. Despite the high tax potential, many business owners neglect their tax obligations. Using a quantitative descriptive approach, data were collected from 33 boarding house owners via questionnaires and analyzed using multiple linear regression. Results indicate that taxpayer knowledge, understanding, and awareness significantly enhance compliance. This research highlights the need for targeted educational and awareness programs to improve tax compliance among boarding house owners in industrial areas. Highlight: High Potential: Industrial area boarding house taxes are significantly underutilized. Key Factors: Knowledge, understanding, and awareness boost taxpayer compliance. Policy Implications: Educational programs improve tax compliance in industrial areas. Keyword: tax compliance, boarding houses, taxpayer knowledge, Sidoarjo, quantitative analysis

International tax incentives, cross-border research and development, and corporate innovation performance

Based on a sample of multinational firms from 2012 to 2022, this study uses empirical models to examine the impact of R&D tax incentives on corporate innovation. We find that tax incentives can greatly enhance a firm's R&D expenditures. However, innovation performance is not significantly improved. The results suggest firms merely transfer their R&D activities from countries with low tax subsidies to countries with high tax subsidies, and the real effect of tax incentives on boosting innovation is limited. This study provides valuable insights to practitioners by shedding light on the impact of tax incentives on innovation outcomes.

Impact of windfall tax on market dynamics: A Cournot oligopoly model with exogenous shocks

This study explores the nuanced impact of windfall taxes on market equilibrium, introducing an innovative approach within the Cournot oligopoly framework. The paper uses the 0–1 test for chaos to dissect how profit taxation can stabilize market behaviors under bounded rationality. It suggests that higher taxes may prevent collusion, thereby promoting a more competitive environment. The paper demonstrates that while windfall taxes leave regular markets almost unaffected, they can protect firms in chaotic states from adverse outcomes. This research underscores the necessity for policymakers to tailor windfall tax strategies to specific market conditions, potentially driving enhanced market efficiency. Our insights advocate for the judicious application of windfall taxes, which could significantly shape future economic policies.