논문 상세보기
Fiscal Convergence and Total Factor Productivity: Firm-Level Evidence from Pakistan KCI 등재 SCOPUS
- 언어ENG
- URLhttps://db.koreascholar.com/Article/Detail/399975
This study examines the impact of corporate tax, a fiscal measure along with trade liberalization and research and development on total factor productivity for a panel of 153 industrial firms listed on the Pakistan Stock Exchange over the period 1997-2017. For empirical analysis, we employ the system generalized method of moment estimator. In the first step, we estimate industrial production function and the results reveal that raw material, industrial labour force and energy play vital role in enhancing industrial production. Whereas, industrial capital exerts negative impact on industrial output. We also measured total factor productivity using the production elasticities. In the second step, we examine the impact of corporate tax, trade liberalization and research and development on total factor productivity. The results indicate that higher level of corporate tax exerts negative impact on total factor productivity. The findings reveal that higher corporate taxation discourages industrial firms to undertake research and development thereby exerting adverse impact on total factor productivity of firms. The impact of trade liberalization proxied by average tariff is positive while customs duty and sales tax negatively impact firm-level total factor productivity. These findings provide useful insights for managers, investors and policy makers in Pakistan.
1. Introduction
2. Literature Review
3. Research Methods and Materials
3.1. Data Description
3.2. Definition of Variables
3.3. Research Method
4. Results and Discussion
4.1. Estimation of Production Function
4.2. Estimation of Firms-Level TFP
4.3. Impact of Corporate Tax, TradeLiberalization and Research and Developmenton Firm-Level TFP
5. Conclusion, Policy Implication andLimitation
References
