The fact that fiscal policy measures impact the business environment is undeniable.\nHowever, quantifying the overall influence of changes in taxation on companies� activity still\nrepresents a challenging issue for researchers and policy makers alike. The research results\npresented in this study aim to clarify the way in which fiscal policy influences an important\nsector of the economy, the manufacturing sector. To achieve this goal, business confidence\nin the production sector was quantified using the manufacturing confidence index. The tax\nburden was used as a way of describing and numerically capturing changes in taxation. The\ndatabase used consists of information regarding countries with well-established\nmanufacturing sectors, for a period of almost four decades.
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