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

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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.

Acknowledgment
The 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.

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    • Figure 1. Average values of indicators of the formation of tax competitiveness for the formed clusters
    • Figure 2. Clustering of countries according to tax competitiveness indicators using the Ward method
    • Table 1. Normalized values of indicators for assessing the level of the country’s tax competitiveness (in the example of Ukraine)
    • Table 2. Weighting factors for assessing the level of the country’s tax competitiveness
    • Table 3. Assessment of the country’s tax competitiveness level
    • Table 4. Dispersion analysis of indicators of tax competitiveness for different clustering methods
    • Table 5. Clustering of countries according to indicators of tax competitiveness based on the k-means method
    • Table 6. Reliability test of clustering of countries according to the Kalinsky-Kharabash criterion
    • Table 7. Clustering of countries according to indicators of tax competitiveness formation based on Ward’s method
    • Data curation
      Inna Tiutiunyk, Viktoriia Taranenko, Oleksiy Mazurenko
    • Formal Analysis
      Inna Tiutiunyk, Oleksiy Mazurenko, Artem Artyukhov
    • Funding acquisition
      Inna Tiutiunyk, Oleksiy Mazurenko, Yuliia Yehorova
    • Investigation
      Inna Tiutiunyk, Oleksiy Mazurenko
    • Project administration
      Inna Tiutiunyk, Oleksiy Mazurenko
    • Resources
      Inna Tiutiunyk, Oleksiy Mazurenko
    • Software
      Inna Tiutiunyk, Viktoriia Taranenko, Oleksiy Mazurenko, Artem Artyukhov
    • Supervision
      Inna Tiutiunyk, Viktoriia Taranenko, Oleksiy Mazurenko
    • Validation
      Inna Tiutiunyk, Viktoriia Taranenko, Oleksiy Mazurenko
    • Visualization
      Inna Tiutiunyk, Viktoriia Taranenko, Oleksiy Mazurenko
    • Writing – original draft
      Inna Tiutiunyk, Viktoriia Taranenko, Oleksiy Mazurenko, Artem Artyukhov, Yuliia Yehorova
    • Writing – review & editing
      Inna Tiutiunyk, Viktoriia Taranenko, Oleksiy Mazurenko, Artem Artyukhov, Yuliia Yehorova
    • Conceptualization
      Oleksiy Mazurenko
    • Methodology
      Oleksiy Mazurenko