Template-type: ReDIF-Paper 1.0

Author-Name: Julio López-Laborda
Author-Workplace-Name: Department of Public Economics, University of Zaragoza, Spain
Author-Workplace-Email: julopez@unizar.es

Author-Name: Guillermo Peña
Author-Workplace-Name: Department of Public Economics, University of Zaragoza, Spain
Author-Workplace-Email: gpena@unizar.es

Title: Financial VAT May Improve Trade Openness 

Abstract: This paper theoretically and empirically analyzes the influence on the rate of trade openness of the taxation of financial services under VAT. The empirical analysis is carried out using data from the OECD and 36 European Union countries for the period 1961-2012. Dynamic panel data techniques are used, concretely the GMM System, and an unbalanced panel is handled. The results corroborate that financial VAT, and in particular the “option-to-tax” method applied by some countries in the European Union, have a positive impact on a country’s rate of trade openness.
Length: 29 pages 

Creation-Date: 2020-06

File-URL: https://icepp.gsu.edu/files/2020/06/paper2008.pdf
File-Format: application/pdf

Handle: RePEc:ays:ispwps:paper2008