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The Impact of Direct and Indirect Taxes on the Growth of the Turkish Economy*
Preliminary communication | Year: 2019 | Pages: 311 - 323 | Volume: 43 | Issue: 3 Received: July 9, 2019 | Accepted: July 31, 2019 | Published online: September 14, 2019
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FULL ARTICLE
FIGURES & DATA
REFERENCES
CROSSMARK POLICY
METRICS
LICENCING
PDF
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Advantages
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Disadvantages
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·
Avoiding
taxes on goods and services is almost impossible.
·
The return
of value-added tax in export transactions has a positive impact on
foreign trade.
·
Taxing
consumption rather than income in order not to alter total income encourages
economic growth.
·
Raising
indirect taxes also raises capital accumulation in the long term.
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·
Reducing
income tax in favor of raising value-added tax increases the tax burden on
those with lower- and middle-class incomes.
·
Raising
indirect taxes curbs the overall demand for goods and services.
·
Focusing
on consumption encourages those with upper-class incomes who also consume
little to evade taxes.
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Descriptive statistics
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LGDP
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LIT
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LDT
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Mean
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19.5805
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16.5633
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15.4622
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Median
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19.5677
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16.5482
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15.4209
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Maximum
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19.9026
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17.3774
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16.5224
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Minimum
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19.2969
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15.8865
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14.5990
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Standard Deviation
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0.2010
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0.4677
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0.4942
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Skewness
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0.1154
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0.0344
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0.1649
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Kurtosis
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1.5702
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1.7247
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1.9648
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Jarque–Bera
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4.5444*
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1.7247*
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2.5577*
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Variable
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ADF
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PP
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LGDP
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-2.032(-4.148)
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-1.444(-4.152)
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∆LGDP
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-6.963(-4.152)*
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-7.504(-4.156)*
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LIT
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-4.349 (-4.148)*
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-4.245 (-4.148)*
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LDT
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-5.790 (-4.152)*
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-5.996 (-4.148)*
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Estimated model
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Optimal lag
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F-statistics
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Lower bound
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Upper bound cointegration
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4.38
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5.35 (10%)
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LGDP=f (LIT, LDT)
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(4,1,0)
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14.16
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5.24
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6.30 (5%)
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Exists
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7.33
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8.72 (1%)
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Variables
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Coefficients
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t-statistics
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p-value
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LGDP_SA(-1)
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0.4419
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3.1087
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0.0035
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LGDP_SA(-2)
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-0.0530
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-0.3567
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0.7232
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LGDP_SA(-3)
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0.0872
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0.5906
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0.5582
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LGDP--SA(-4)
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0.3035
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2.2880
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0.0276
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LIT_SA
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0.2795
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6.1999
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0.0000
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LIT_SA(-1)
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0.1166
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2.4336
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0.0196
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LDT_SA
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-0.0892
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-3.3311
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0.0019
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C
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-0.6772
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-0.4504
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0.6549
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@TREND
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-0.0064
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-3.2102
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0.0027
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Variables
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Coefficients
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t-statistics
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p-value
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LIT_SA
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1.7983
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2.9701
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0.0051
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LDT_SA
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-0.4052
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-2.1865
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0.0348
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CointEq(-1)*
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-0.2203
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-6.6839
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0.0000
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EC = LGDP_SA - (1.7983*LIT_SA
-0.4053*LDT_SA)
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Test
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F-statistics
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p-value
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Breusch–Godfrey LM test
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0.2147
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0.8077
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White Test
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0.581
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0.4796
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September, 2019
III/2019 |
