Does Tax Competition for Capital Define Entrepreneurship Trends in Eastern Europe?

Abstract

The article deals with the analysis of relationships between tax competition and entrepreneurship development in Eastern European and Baltic countries during 2006-2017. Incomplete nature of tax systems reforming in these countries forms preconditions for their participation in crosscountry tax competition in investment flows reallocation. The main instrument of the tax competition includes tax rates, which are defined by convergence tendencies in the studied countries. Other factors of the research are tax burden levels on the enterprise, tax administration indices and macroeconomic indicators. The entrepreneurship development at the country's level is characterized by a number of new businesses, the duration of their life cycle and their liquidation indices. The On-line Journal Modelling the New Europe Issue no. 27/2018 35 calculations results show that higher levels of absolute tax rates for enterprises lead to the reduction of their creation volumes in the country's economy. High level of the tax burden partially restrains entrepreneurial activity. Tax administration plays a significant role in the provision of the country's tax competition. Time to pay taxes and the number of tax payments have a great impact on entrepreneurship development at different stages. The hypothesis is proved that tax factors impact on the entrepreneurial activity is reasonable to be observed within the context of the country's macroeconomic conditions.

The Evolution of Family Entrepreneurship in Poland: Main Findings Based on Surveys and Interviews from 2009-2018

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Labour Market Disadvantages Faced by Migrant Workers from Czech Republic, Hungary, and Slovakia in Britain

“…The Czech Republic is the traditional destination of Slovaks due to their common historical, linguistic, cultural and geographic proximity and favourable regulatory policies among the countries. The number of Slovaks working in Hungary is also estimated to be around 20,000, with more than 13,000 workers commuting to work from Slovakia to Hungary daily (Bolečeková et al, 2018;Šprocha et al, 2018;Vasylieva and Samusevych, 2018). OECD estimates indicated that between 2004 and 2010, on average about 10,000 Czech nationals returned home compared to 13,000 Slovaks and 22,000 Hungarians (Zaiceva and Zimmermann, 2016).…”

Optimization of the financial decentralization level as an instrument for the country’s innovative economic development regulation

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