IS THERE A RELATIONSHIP BETWEEN DIRECT AND INDIRECT TAX REVENUES WITH EXCHANGE RATE VOLATILITY: EVIDENCE FROM TURKEY
IS THERE A RELATIONSHIP BETWEEN DIRECT AND INDIRECT TAX REVENUES WITH EXCHANGE RATE VOLATILITY: EVIDENCE FROM TURKEY
Author(s): Sinem KoçakSubject(s): Economic history, Economic policy, Transformation Period (1990 - 2010), Present Times (2010 - today), Fiscal Politics / Budgeting
Published by: Bingöl Üniversitesi Sosyal Bilimler Enstitüsü
Keywords: Exchange rate volatility; Direct taxes; Indirect taxes; The Toda-Yamamoto causality; Turkey;
Summary/Abstract: This study seeks empirical proof for this basic question: is there a relationship between direct-indirect tax revenues with exchange rate volatility? For the period of 2006:Q1-2019:Q4 in Turkey, the Toda-Yamamoto causality approach was performed to delve into the causal relationships between the exchange rate volatility determined by the moving standard deviation of the real effective exchange rate and both direct and indirect taxes. The results of the Toda-Yamamoto causality test revealed the presence of a one-way causality relationship from direct taxes to exchange rate volatility and also a one-way causality relationship from indirect taxes to exchange rate volatility. Under a causality approach framework, the paper occurred a significant empirical inference for the relationship of exchange rate volatility with both direct and indirect taxes.
Journal: Bingöl Üniversitesi Sosyal Bilimler Enstitüsü Dergisi (BUSBED)
- Issue Year: 11/2021
- Issue No: 22
- Page Range: 663-681
- Page Count: 19
- Language: English