Acta academica karviniensia 2018, 18(2):46-57 | DOI: 10.25142/aak.2018.012

DEPENDENCE BETWEEN COMPETITIVENESS AND TAX INDICATORS BASED ON COMPETITIVENESS REPORTS

Jan Tecl

University of economics in Prague, Faculty of finance and accounting, nám. W. Churchilla 4, 130 67 Praha 3

This paper deals with dependence between the overall value of competitiveness from world ranks and tax variables with focus on the labor taxation. The analysis is carried out for the period between 2014 and 2016 as the regression analysis. Based on current literature, there is a relationship between competitiveness and taxation. Assumption is that a country has higher competitiveness with a lower tax rate. The results show, that there is a statistically significant relationship between competitiveness and tax variables. A relationship in line with expectation was found between competitiveness and effect of taxation on incentives to work. In another test, consumption tax was statistically significant. In case of tests with variables from the OECD (tax rates), there was found a statistically significant relationship with a personal income tax combined with social security payments, but the relationship was opposite to the expected one.

Keywords: competitiveness, labor taxation, taxation, world-wide competitiveness ranks

JEL classification: H20

Received: May 9, 2018; Revised: June 1, 2018; Accepted: June 13, 2018; Published: June 30, 2018  Show citation