Interstate Tax Exportation within the United States: An Appraisal of the Literature

Abstract

This paper evaluates the literature concerning interregional, exportation and importation of state and local taxes. General analytical, principles of tax exportation are described. Major empirical studies, which, show considerable variation of exportation by type of tax and by state, are, reviewed critically. Extensions of previous empirical findings are discussed, in order to consider the long-run effects of state tax policy on regional, growth and resource allocation. The assessment of long-run impacts is shown, to be an important area for future research.