THE EFFECT OF TAX REVENUES AND TAX STRUCTURE ON THE SUSTAINABILITY OF ECONOMIC GROWTH: AN ANALYSIS IN PERSPECTIVE OF WELFARE, EFFICIENCY AND COMPETITIVENESS

Hüseyin Karagöz

Article Details

THE EFFECT OF TAX REVENUES AND TAX STRUCTURE ON THE SUSTAINABILITY OF ECONOMIC GROWTH: AN ANALYSIS IN PERSPECTIVE OF WELFARE, EFFICIENCY AND COMPETITIVENESS

Authors:

Hüseyin Karagöz

Publisher:

Istanbul Ticaret University

Main Topics:

Büyüme | Refah Ekonomisi | Kamu Ekonomisi - Vergilendirme ve Gelir

Journal:

İstanbul Ticaret Üniversitesi Sosyal Bilimler Dergisi Vol.22 Issue 46, pp.438-457

Document Type:

Article

Publication Date:

6/2023

Document Language:

Turkish

Document ID (Org No.):

2001294779

pISSN:

1303-5495

Keywords:

Abstract:

 Purpose: It is known that taxes, which constitute the primary source of income for the government, have significant effects on the economy. Therefore, the priorities of governments in designing the tax system can be summarized as achieving maximum revenue with minimum cost in the mechanism and development of the economy. The necessity that can be defined as an optimal tax system can vary according to the economic conditions of countries. Moreover, the preferences and priorities of governments can also change based on economic and political conditions, and the costs arising from the level and structure of taxes may be disregarded. This study purposes to investigate the effects of tax levels and tax structure on efficiency, competitiveness, and welfare, which play an critical role in the sustainability of growth. Method: In the study, the independent variables are depicted as the ratio of total tax revenues -which is referred to as the average tax rate- to GDP, and the shares of personal income, corporate, and goods and services taxes in total taxes. Per capita income based on purchasing power parity PPP, total factor productivity, and the Global Competitiveness Index are determined as dependent variables. The study utilized panel data models to analyze the data from the period 2008-2017 of 35 OECD member countries. Findings: According to the findings, the share of goods and services taxes in total tax revenues has a negative impact on per capita income level and total factor productivity based on purchasing power parity SAGP. Additionally, the share of corporate taxes in total tax revenues positively impacts total factor productivity, while the ratio of total tax revenues to GDP positively impacts the Global Competitiveness Index. Originality: In literature discussing the economic effects of taxes, growth rates are generally considered, and the sources of growth are often overlooked. As the sources of growth provide crucial information for sustainability, this study evaluates qualitative development and indicators of welfare. The study investigates the effects of tax revenues and tax structure on these indicators.

 Purpose: It is known that taxes, which constitute the primary source of income for the government, have significant effects on the economy. Therefore, the priorities of governments in designing the tax system can be summarized as achieving maximum revenue with minimum cost in the mechanism and development of the economy. The necessity that can be defined as an optimal tax system can vary according to the economic conditions of countries. Moreover, the preferences and priorities of governments can also change based on economic and political conditions, and the costs arising from the level and structure of taxes may be disregarded. This study purposes to investigate the effects of tax levels and tax structure on efficiency, competitiveness, and welfare, which play an critical role in the sustainability of growth. Method: In the study, the independent variables are depicted as the ratio of total tax revenues -which is referred to as the average tax rate- to GDP, and the shares of personal income, corporate, and goods and services taxes in total taxes. Per capita income based on purchasing power parity PPP, total factor productivity, and the Global Competitiveness Index are determined as dependent variables. The study utilized panel data models to analyze the data from the period 2008-2017 of 35 OECD member countries. Findings: According to the findings, the share of goods and services taxes in total tax revenues has a negative impact on per capita income level and total factor productivity based on purchasing power parity SAGP. Additionally, the share of corporate taxes in total tax revenues positively impacts total factor productivity, while the ratio of total tax revenues to GDP positively impacts the Global Competitiveness Index. Originality: In literature discussing the economic effects of taxes, growth rates are generally considered, and the sources of growth are often overlooked. As the sources of growth provide crucial information for sustainability, this study evaluates qualitative development and indicators of welfare. The study investigates the effects of tax revenues and tax structure on these indicators.

 Purpose: It is known that taxes, which constitute the primary source of income for the government, have significant effects on the economy. Therefore, the priorities of governments in designing the tax system can be summarized as achieving maximum revenue with minimum cost in the mechanism and development of the economy. The necessity that can be defined as an optimal tax system can vary according to the economic conditions of countries. Moreover, the preferences and priorities of governments can also change based on economic and political conditions, and the costs arising from the level and structure of taxes may be disregarded. This study purposes to investigate the effects of tax levels and tax structure on efficiency, competitiveness, and welfare, which play an critical role in the sustainability of growth. Method: In the study, the independent variables are depicted as the ratio of total tax revenues -which is referred to as the average tax rate- to GDP, and the shares of personal income, corporate, and goods and services taxes in total taxes. Per capita income based on purchasing power parity PPP, total factor productivity, and the Global Competitiveness Index are determined as dependent variables. The study utilized panel data models to analyze the data from the period 2008-2017 of 35 OECD member countries. Findings: According to the findings, the share of goods and services taxes in total tax revenues has a negative impact on per capita income level and total factor productivity based on purchasing power parity SAGP. Additionally, the share of corporate taxes in total tax revenues positively impacts total factor productivity, while the ratio of total tax revenues to GDP positively impacts the Global Competitiveness Index. Originality: In literature discussing the economic effects of taxes, growth rates are generally considered, and the sources of growth are often overlooked. As the sources of growth provide crucial information for sustainability, this study evaluates qualitative development and indicators of welfare. The study investigates the effects of tax revenues and tax structure on these indicators.

 Amaç: Devletin en temel gelir kaynağını oluşturan vergilerin ekonomide önemli etkiler yarattığı bilinmektedir. Bu nedenle, vergi sisteminin tasarımında devletlerin öncelikleri, ekonominin işleyişi ve gelişiminde minimum maliyetle maksimum gelirinin elde edilmesi şeklinde özetlenebilmektedir. Optimal vergi sistemi olarak tanımlanabilen bu gereklilik ise ülkelerdeki ekonomik koşullara göre farklılaşabilmektedir. Ayrıca, yine ekonomik ve politik koşullara göre devletlerin tercih ve öncelikleri de değişebilmekte, vergilerin düzey ve yapısından kaynaklanan maliyetler göz ardı edilebilmektedir. Bu bağlamda çalışmada, vergi düzeyi ve vergi yapının büyümenin sürdürülebilirliğinde önemli rol oynayan verimlilik, rekabet gücü ve refah düzeyi üzerindeki etkilerinin araştırılması amaçlanmaktadır. Yöntem: Çalışmada, ortalama vergi oranı olarak ifade edilen toplam vergi gelirlerinin GSYHye oranı ile kişisel gelir, kurumlar ve mal ve hizmet vergilerinin toplam vergiler içerisindeki payları bağımsız değişkenler, satın alma gücü paritesine SAGP göre kişi başına gelir, toplam faktör verimliliği ve Küresel Rekabetçilik endeksi ise bağımlı değişkenler olarak belirlenmiştir. OECD üyesi 35 ülkenin 2008-2017 dönemini kapsayan çalışmada, panel veri analizi yöntemi kullanılmıştır. Bulgular: Elde edilen bulgulara göre, mal ve hizmet vergilerinin toplam vergi gelirleri içerisindeki payı SAGPye göre kişi başına gelir düzeyini ve toplam faktör verimliliğini negatif yönde etkilemektedir. Ayrıca, kurumlar vergisinin toplam vergi gelirleri içerisindeki payı toplam faktör verimliliğini pozitif yönde etkilerken, toplam vergi gelirlerini GSYHye oranı Küresel Rekabetçilik Endeksini pozitif yönde etkilemektedir. Özgünlük: Vergilerin ekonomik etkilerini inceleyen çalışmalarda genel olarak büyüme oranları dikkate alınmakta ve büyümenin kaynakları genel olarak göz ardı edilmektedir. Büyümenin kaynakları sürdürülebilirlik açısından önemli bilgiler sağladığından, bu çalışmada niteliksel gelişim ve refah göstergeleri dikkate alınmakta ve vergi gelirleri ve vergi yapısının bu göstergeler üzerindeki etkileri araştırılmaktadır.

Article Details

THE EFFECT OF TAX REVENUES AND TAX STRUCTURE ON THE SUSTAINABILITY OF ECONOMIC GROWTH: AN ANALYSIS IN PERSPECTIVE OF WELFARE, EFFICIENCY AND COMPETITIVENESS

Authors:

Hüseyin Karagöz

Publisher:

Istanbul Ticaret University

Main Topics:

Büyüme | Refah Ekonomisi | Kamu Ekonomisi - Vergilendirme ve Gelir

Journal:

İstanbul Ticaret Üniversitesi Sosyal Bilimler Dergisi Vol.22 Issue 46, pp.438-457

Document Type:

Article

Publication Date:

6/2023

Document Language:

Turkish

Document ID (Org No.):

2001294779

pISSN:

1303-5495

Tax Structure

Productivity

Competitiveness

Economic Growth.Vergi Yapısı

Verimlilik

Rekabet Gücü

Ekonomik Büyüme

Issues

Article Details

Authors: Hüseyin Karagöz

Publisher: Istanbul Ticaret University

Main Topics: Büyüme | Refah Ekonomisi | Kamu Ekonomisi - Vergilendirme ve Gelir

Journal: İstanbul Ticaret Üniversitesi Sosyal Bilimler Dergisi Vol.22 Issue 46, pp.438-457

Document Type: Article

Publication Date: 6/2023

Document Language: Turkish

Document ID (Org No.): 2001294779

pISSN: 1303-5495

Issues

Authors:

Hüseyin Karagöz

Publisher:

Istanbul Ticaret University

Main Topics:

Büyüme | Refah Ekonomisi | Kamu Ekonomisi - Vergilendirme ve Gelir

Journal:

İstanbul Ticaret Üniversitesi Sosyal Bilimler Dergisi Vol.22 Issue 46, pp.438-457

Document Type:

Article

Publication Date:

6/2023

Document Language:

Turkish

Document ID (Org No.):

2001294779

pISSN:

1303-5495