Tax competition and tax revenue in the globalization context: empirical evidence in Southeast Asian countries

Abstract

The study examines the hypothesis of tax competition among Southeast Asian countries by the cross-sectional dependence test. Then, we evaluate the effects of tax competition on tax revenues of Southeast Asian countries with corporate tax rates. The analysis shows interdependence among the tax policies of Southeast Asian that is considered as a sign of tax competition in these countries. Meanwhile, empirical results imply the positive effect of tax competition on tax revenues of Southeast Asian countries in the period 1997-2021. Based on these findings, the paper proposed recommendations for the tax policies in Southeast Asia in a globalized world.