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Does Foreign Capital Increase Tax Revenue: The Turkish Case

Author

Listed:
  • Eda Bal k o lu

    (Department of Public Finance, K r kkale University, K r kkale, Turkey)

  • Ba ak Dalg c

    (Department of Public Finance, Hacettepe University, Ankara, Turkey)

  • Burcu Fazl o lu

    (Department of International Entrepreneurship, TOBB Economics and Technology University, Ankara, Turkey)

Abstract

We examine the effect of the foreign direct investment (FDI) on taxes paid for Turkey with a special focus on the differentials between firms operating with different technology levels. We utilize a comprehensive dataset for Turkish manufacturing firms over 2004-2012 period and employ generalized method of moments methodology. The results of the study confirm that foreign affiliation increase the taxes paid by the firms. We find a bigger impact of FDI on taxation for high-technology firms than medium or low technology firms

Suggested Citation

  • Eda Bal k o lu & Ba ak Dalg c & Burcu Fazl o lu, 2016. "Does Foreign Capital Increase Tax Revenue: The Turkish Case," International Journal of Economics and Financial Issues, Econjournals, vol. 6(2), pages 776-781.
    • Handle: RePEc:eco:journ1:2016-02-54
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    References listed on IDEAS

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    More about this item

    Keywords

    Foreign Direct Investment; Tax Revenue; and Generalized Method of Moments;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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