IDEAS home Printed from https://ideas.repec.org/a/eas/econst/v6y2017i6p48-73.html
   My bibliography  Save this article

Evaluation of the Relationship Between Tax Revenues and Inflation in Turkey on VAR Analysis

Author

Listed:
  • Gülçin DURMAZ

    (Çanakkale Onsekiz Mart Üniversitesi, Sosyal Bilimler Enstitüsü, İktisat Anabilim Dalı, Çanakkale, Türkiye)

  • Burcu Kılınç SAVRUL

    (Çanakkale Onsekiz Mart Üniversitesi, İ.İ.B.Fakültesi, İktisat Bölümü, Çanakkale, Türkiye)

Abstract

Tax revenues and inflation concepts are widely stressed subjects in the economic theory. The literature discusses whether a relationship existed or not between the two subjects with economic magnitude. This study aims to analyze the direction of the relationship between the two concepts and investigates whether inflation is significant among other socio-economic factors over income revenues collected in Turkey. For this purpose the relationship between inflation and tax revenues has been investigated by using the data of Turkish economy for the periods 2003:1-2016:10 by using Vector Auto Regressive (VAR) analysis. To investigate the long term relationship Johansen co-integration test and to find out short term relationship vector error-correction test have been used. According to the obtained results by using VAR models a significant relationship exists between the two variables and that the relationship between inflation and tax revenues has been negative. A one-way causative relationship has been found from inflation to tax revenues according to the Granger Causality Test.

Suggested Citation

  • Gülçin DURMAZ & Burcu Kılınç SAVRUL, 2017. "Evaluation of the Relationship Between Tax Revenues and Inflation in Turkey on VAR Analysis," Eurasian Eononometrics, Statistics and Emprical Economics Journal, Eurasian Academy Of Sciences, vol. 6(6), pages 48-73, February.
    • Handle: RePEc:eas:econst:v:6:y:2017:i:6:p:48-73
    DOI: 10.17740/eas.stat.2017-V6-04
    as

    Download full text from publisher

    File URL: https://eurasianacademy.org/index.php/econstat/article/view/937
    Download Restriction: no
    File URL: https://libkey.io/10.17740/eas.stat.2017-V6-04?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eas:econst:v:6:y:2017:i:6:p:48-73. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kutluk Kagan Sumer (email available below). General contact details of provider: https://www.eurasianacademy.org/index.php/econstat .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.