International tax competition as an element of the country’s marketing strategy

Abstract

In the conditions of permanent capital outflow and business registration by residents in other jurisdictions, the issue of developing a country’s marketing strategies for doing business and identifying the most effective mechanisms for increasing international tax attractiveness is urgent. The prerequisite of these processes should be the determination of the level of international tax competitiveness followed by identifying the most significant factors of its growth. The purpose of the study is to assess the level of international tax competitiveness as an element of marketing strategies of Ukraine and some EU countries during 2011–2021. The methodological tools are correlation-regression analysis, the Fisher method, and the multiplicative convolution method. The paper assessed the level of international tax competitiveness as a comprehensive indicator that considers procedural, institutional, moral-ethical, and economic components. The calculations showed that the most competitive are the tax systems of Estonia, Latvia, Lithuania, Croatia, Finland, the Czech Republic, and Hungary. Based on hierarchical and non-hierarchical (k-means method) clustering, 3 clusters of regions were identified. For each of them, based on an analysis of the features of the tax system construction and the comparison of marginal and average values, the criteria for the identification of competing countries and those with common development trends were formed. This makes it possible to determine the most effective mechanisms for the implementation of marketing strategies reforming tax policy from the point of view of increasing its international tax attractiveness. AcknowledgmentThe study is funded by the EU NextGenerationEU through the Recovery and Resilience Plan for Slovakia under the project No. 09I03-03-V01-00042.The authors are grateful to the participants of projects “National security of Ukraine through the prevention of financial fraud and money laundering: war and post-war challenges” (2023–2025, state registration number: 0123U101945) and “De-shadowing and regulatory efficiency of environmental taxation: optimization modelling to ensure national security and rational use of nature” (2022–2024, registration number 0122U000777) for numerous discussions and comments.

Keywords

• macro-financial stability
• marketing strategy
• shadow economy
• strategic management
• tax competitiveness