The impact of trade liberalization on corporate income tax

Leyla Salehipanah¹ hojjat tajik²

1) International Master of Business Administration
2) Master of Accounting

IOI Code : XYFH-BBGEB
Publication : 2nd International Conference On Management and Economics in 21 Century(icme21.com)
Abstract :
    Abstract: Trade liberalization has been considered as one of the main strategies of development in many developing countries.To create competitive environment and promote competitiveness in the domestic and international provide fields for entering into the globalization process.Moving toward an open economy and developing foreign trade policies can largely reduce the wide gap between developing and developed (industrial) countries. However, trade liberalization which is accompaind with reduction and unification of tariffs and abolition of non-tariff barriers should be analyzed whit regard to economic structure of each economy.since, competitiveness in whole dimention is obtained on based on as market formation and transparency of activities based on comparative and competitive advantages; and economic integration in world economy getting preper share in global market is realized. In this study, in order to emphasize the non-oil revenue, and regard to specialty mean.011 of GDP to tax revenue and also.036 to tax corporate in during years research, the impact of trade liberalization on corporate income tax in Iran is investigated during 1971 to 2011 using time-series data.To do this, indicators of economy openness, terms of trade (TOT), foreign investment and the exchange rate are used as proxies for trade liberalization. The results indicate a positive relationship between trade and exchange rate; and corporate tax revenue. The positive impact of foreign investment and terms of trad on corporate income tax is confirmed.

Keywords : trade liberalization corporate tax exchange rates openness