Does Foreign Capital Increase Tax Revenue: The Turkish Case

Authors

  • Eda Balıkçıoğlu Kırıkkale University
  • Başak Dalgıç Hacettepe University
  • Burcu Fazlıoğlu TOBB Economics and Technology University

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.Keywords: Foreign Direct Investment, Tax Revenue, and Generalized Method of MomentsJEL Classifications: D22, F23, H2

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Author Biographies

Eda Balıkçıoğlu, Kırıkkale University

I work as an Assistant Professor for the Department of Public Finance at the Kırıkkale University located in Kırıkkale, Turkey.

Başak Dalgıç, Hacettepe University

I work as an Assistant Professor for the Department of Public Finance at the Hacettepe University located in Ankara Turkey.

Burcu Fazlıoğlu, TOBB Economics and Technology University

I work as an Assistant Professor for the Department of International Entrepreneurship at the TOBB University of Economics and Technology located in Ankara Turkey.

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Published

2016-04-19

How to Cite

Balıkçıoğlu, E., Dalgıç, B., & Fazlıoğlu, B. (2016). Does Foreign Capital Increase Tax Revenue: The Turkish Case. International Journal of Economics and Financial Issues, 6(2), 776–781. Retrieved from https://econjournals.com/index.php/ijefi/article/view/2110

Issue

Vol. 6 No. 2 (2016)

Section

Articles
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