FOREIGN DIRECT INVESTMENT AND CORPORATION TAX REVENUES: A GRANGER CAUSALITY ANALYSIS FOR TURKEY
DOĞRUDAN YABANCI YATIRIMLAR VE KURUMLAR VERGİSİ GELİRLERİ: TÜRKİYE İÇİN GRANGER NEDENSELLİK ANALİZİ

Author : Hale AKBULUT
Number of pages : 647-657

Abstract

Depending on the improvement of globalization, it is observed that the mobility of the international capital flows has increased in the last decades. One of the reasons behind that mobility is the diversification of tax rates on capital revenues between different countries. The aim of this paper is to test the relationship between corporation taxes and foreign direct investments in terms of Turkey. For that purpose, 2006:01-2016:04 quarterly data set and Granger causality analysis are employed. As a result, no Granger causality relationship has been observed between foreign direct investments and corporation tax revenues. On the other hand, when foreign direct investments are diversified according to sectors; one way causality from corporation tax revenues to foreign direct investments on industry has been found. An opposite way Granger causality has been found between foreign direct investments on agriculture and services and corporation tax revenues.

Keywords

tax competition, corporation tax.

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