The Relationship Between Tax Revenue And Economic Growth In Turkey: The Period Of 1975-2011

The Relationship Between Tax Revenue And Economic Growth In Turkey: The Period Of 1975-2011

Yeşim , Helhel

In the study, the relationship between tax revenues and economic growth for the Turkish economy has been examined in the period of 1975-2011. Johansen Juselious cointegration test and Granger causality test have been used in order to find long term and short term relationship, respectively. Impulse-response function and variance decomposition analysis have been applied via VAR model. The findings have shown that there is interaction between tax revenue types and the economic growth in the long term and is not such an interaction in the short term. The effect of the shock given to indirect tax revenue to economic growth rate has decline; the response of growth rate to shock given to direct tax revenue has been tendency to rise up towards the end of the period. In the variance decomposition method; direct tax revenue is more effective than indirect one. But, the growth rate that is expressed by GDP (gross domestic product) or other factors affecting growth rather than tax revenue has been appeared affected itself. Keywords: Direct tax, indirect tax, economic growth, granger causality test, co-integration test, VAR

Conference or Workshop Item
PeerReviewed

2012-05-31

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