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Is There A Long-Run Relationship Between Taxation And Growth: The Case Of Turkey

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  • Katircioglu, Salih Turan

    (Department of Banking and Finance, Eastern Mediterranean University, P.O. Box 95, Famagusta / North Cyprus, Via Mersin 10, Turkey)

Abstract

This paper empirically investigates long-run equilibrium relationship between economic growth and tax revenues in Turkey by using the bounds test and Johansen technique for cointegration. Results suggest that the existence of long-run equilibrium relationship between economic growth and taxation cannot be confirmed in the case of Turkey as a result of the bounds and Johansen tests for cointegration. Thus, further investigation such as error-correction modeling and/or causality analysis cannot be preceded between these two variables in the case of the Turkish economy.

Suggested Citation

  • Katircioglu, Salih Turan, 2010. "Is There A Long-Run Relationship Between Taxation And Growth: The Case Of Turkey," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 99-106, March.
    • Handle: RePEc:rjr:romjef:v::y:2010:i:1:p:99-106
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    References listed on IDEAS

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    1. Slemrod,Joel (ed.), 1999. "Tax Policy in the Real World," Cambridge Books, Cambridge University Press, number 9780521641371, December.
    2. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    3. Mehmet Serkan Tosun & Sohrab Abizadeh, 2005. "Economic growth and tax components: an analysis of tax changes in OECD," Applied Economics, Taylor & Francis Journals, vol. 37(19), pages 2251-2263.
    4. Slemrod,Joel (ed.), 1999. "Tax Policy in the Real World," Cambridge Books, Cambridge University Press, number 9780521646444, December.
    5. Sükrü Binay, 2003. "Some issues in fiscal policy and central banking: the case of Turkey," BIS Papers chapters, in: Bank for International Settlements (ed.), Fiscal issues and central banking in emerging economies, volume 20, pages 245-259, Bank for International Settlements.
    6. King, Robert G & Rebelo, Sergio, 1990. "Public Policy and Economic Growth: Developing Neoclassical Implications," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 126-150, October.
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    Cited by:

    1. Mihai Mutascu, 2014. "Influence of climate conditions on tax revenues," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 8(3), September.
    2. Cengiz Arikan & Yeliz Yalcin, 2013. "Determining the Exogeneity of Tax Components with Respect to GDP," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 3(3), pages 242-255, July.
    3. Charles Shaaba Saba & Nicholas Ngepah, 2019. "Military expenditure and economic growth: evidence from a heterogeneous panel of African countries," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 32(1), pages 3586-3606, January.
    4. Mihai Mutascu, 2012. "Taxation under media capture," Economics Bulletin, AccessEcon, vol. 32(4), pages 2752-2767.

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    More about this item

    Keywords

    taxation; growth; long-run relationship; Turkey;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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