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Analysis of Non-tax Revenue: Evidence from the European Union

Author

Listed:
  • Volkan Yurdadog

    (University of Cukurova, Adana, Turkey)

  • Neslihan Coskun Karadag

    (University of Cukurova, Adana, Turkey)

  • Murat Albayrak

    (University of Cukurova, Adana, Turkey)

  • Oguzhan Bozatli

    (University of Osmaniye Korkut Ata, Osmaniye, Turkey)

Abstract

The challenges states face in reducing government expenditures under certain budget constraints are putting pressure on states to increase their revenues. Given that taxation also has a limit, the importance of non-tax revenues (NTR) in financing growing government expenditures increases day by day. In this sense, our study first analyzes the historical and theoretical foundations of NTR in the European Union (EU). Subsequently, from 1995 to 2018, NTR's determinants and their interrelationships were analyzed using panel data analysis and panel causality methods. The findings point to statistically significant and robust effects of general and central government expenditures (except local government expenditures), tax revenues, and GDP on the NTR. According to panel causality results, there is unidirectional causality from independent variables (General, Central and Local Government Expenditure, Tax Revenue, GDP) to NTR, and unidirectional causality from NTR to independent variables (except GDP). In other words, there is bidirectional causality between NTR and independent variables, except for GDP.

Suggested Citation

  • Volkan Yurdadog & Neslihan Coskun Karadag & Murat Albayrak & Oguzhan Bozatli, 2022. "Analysis of Non-tax Revenue: Evidence from the European Union," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 24(60), pages 485-485, April.
    • Handle: RePEc:aes:amfeco:v:24:y:2022:i:60:p:485
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    References listed on IDEAS

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    More about this item

    Keywords

    Non-Tax Revenue; Panel Data Analysis; Panel Causality; European Union;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H27 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other Sources of Revenue
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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