Main Article Content
The purpose of this research is to analyse and examine the effect of corporate income tax on the investment in Japan from 1987 to 2016. It is an associative-causal research. The secondary data are taken form International Monetary Fund, International Financial Statistics and data files using World Bank. The hypotheses were tested by using the multiple linear regression analysis. The results of this research showed that, simultaneously, corporate income tax rate and interest rate have highly significant effect on investment. After the research is conducted and it was analysed with partial test, corporate income tax rate negatively affects investment in Japan. It is highly recommended that Japan government should reduce the corporate income tax on companies so that there will be more investment in Japan.
JEL Classification: E22, H32
This work is licensed under a Creative Commons Attribution 4.0 International License.
Akram T (2019) The Japanese Economy: Stagnation, Recovery, and Challenges. Journal of Economic Is-sues, 403-410.
Djankov S, Ganser T, McLiesh C (2010) The Effect of Cor-porate Taxes on Investment and Entrepreneur-ship. American Economic Journal: Macroeconomics, American Economic Association, vol. 2(3), 31-64.
Gujarati DN (2004) Basic Econometrics. New York: The McGraw-Hill Companies.
Hassett KA, Hubbard RG (1996) Tax Policy and Invest-ment. NBER Working Paper No. 5683 (Also Reprint No. r2177), 1-55.
Mankiw NG (2017) Macroeconomics. New York: Worth Publishers.
Ohrn E (2018) The Effect of Corporate Taxation on In-vestment and Financial Policy: Evidence from the DPAD. American Economic Journal: Economic Poli-cy, 272-301