Tax Burden and Economic Growth: 1989-2011 Turkey Experience

Mangir F., Ertugrul H. M.

MALIYE DERGISI, sa.162, ss.256-265, 2012 (ESCI) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: Sayı: 162
  • Basım Tarihi: 2012
  • Dergi Adı: MALIYE DERGISI
  • Derginin Tarandığı İndeksler: Emerging Sources Citation Index (ESCI), TR DİZİN (ULAKBİM)
  • Sayfa Sayıları: ss.256-265
  • Hacettepe Üniversitesi Adresli: Evet

Özet

In this study the relation between tax burden and GDP was investigated for the period 1988-2011 and co-integration analysis with Pesaran bounds testing (2001) is applied to estimate long term effect of tax burden on GDP. And then to the existence of long and short run relationships between GDP and tax burden, auto-regressive distributed lag (ARDL) bounds approach was employed. Results suggest that the existence of co-integration relationship between GDP and tax burden and the short and long run results indicate that tax burden is statistical significant and negatively affects economic growth. As a result, the negative effect of applications to increase the tax burden stated by the theory of endogenous growth is overlapping with our test results.