Effect of Average Tax Rates on
Long-Run Economic Growth Rate in Turkey Cover Image

Effect of Average Tax Rates on Long-Run Economic Growth Rate in Turkey
Effect of Average Tax Rates on Long-Run Economic Growth Rate in Turkey

Author(s): Osman Cenk Kanca, Rahmi Yamak
Subject(s): National Economy
Published by: Editura Universitară Danubius
Keywords: Average Tax Rate; Long-Run Economic Growth; ARDL Bounds Testing Approach;

Summary/Abstract: Although tax revenue is one of the important parameters in public sector, its relationship with economic growth has been discussed in fiscal economics theory for a long time. The purpose of this study is to determine whether tax rates affect the long-run economic growth rate both in short and long-run for the period of 1980-2015. In the study, bounds test approach of the ARDL model developed by Pesaran et al. (2001) was employed. The long-run economic growth rates were produced by three different filters. The main finding of the study is that there exists an U-shaped curve relationship between average tax rate and long-run economic growth rate for Turkey.

  • Issue Year: 14/2018
  • Issue No: 5
  • Page Range: 286-298
  • Page Count: 13
  • Language: English