Does Foreign Capital Increase Tax Revenue: The Turkish Case

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 M...

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Main Authors: Eda Balıkçıoğlu, Başak Dalgıç, Burcu Fazlıoğlu
Format: Article
Language:English
Published: EconJournals 2016-04-01
Series:International Journal of Economics and Financial Issues
Online Access:http://mail.econjournals.com/index.php/ijefi/article/view/2110
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author Eda Balıkçıoğlu
Başak Dalgıç
Burcu Fazlıoğlu
author_facet Eda Balıkçıoğlu
Başak Dalgıç
Burcu Fazlıoğlu
author_sort Eda Balıkçıoğlu
collection DOAJ
description 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 Moments JEL Classifications: D22, F23, H2
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spelling doaj.art-0697ddf1b24b4139a959443aa5a0a2bc2023-02-15T16:17:31ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382016-04-0162Does Foreign Capital Increase Tax Revenue: The Turkish CaseEda Balıkçıoğlu0Başak Dalgıç1Burcu Fazlıoğlu2Kırıkkale UniversityHacettepe UniversityTOBB Economics and Technology University 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 Moments JEL Classifications: D22, F23, H2 http://mail.econjournals.com/index.php/ijefi/article/view/2110
spellingShingle Eda Balıkçıoğlu
Başak Dalgıç
Burcu Fazlıoğlu
Does Foreign Capital Increase Tax Revenue: The Turkish Case
International Journal of Economics and Financial Issues
title Does Foreign Capital Increase Tax Revenue: The Turkish Case
title_full Does Foreign Capital Increase Tax Revenue: The Turkish Case
title_fullStr Does Foreign Capital Increase Tax Revenue: The Turkish Case
title_full_unstemmed Does Foreign Capital Increase Tax Revenue: The Turkish Case
title_short Does Foreign Capital Increase Tax Revenue: The Turkish Case
title_sort does foreign capital increase tax revenue the turkish case
url http://mail.econjournals.com/index.php/ijefi/article/view/2110
work_keys_str_mv AT edabalıkcıoglu doesforeigncapitalincreasetaxrevenuetheturkishcase
AT basakdalgıc doesforeigncapitalincreasetaxrevenuetheturkishcase
AT burcufazlıoglu doesforeigncapitalincreasetaxrevenuetheturkishcase