Does Foreign Capital Increase Tax Revenue: The Turkish Case

Eda Bal k o Lu, Ba ak Dalg C and Burcu Fazl o Lu
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Eda Bal k o Lu: Department of Public Finance, K r kkale University, K r kkale, Turkey
Ba ak Dalg C: Department of Public Finance, Hacettepe University, Ankara, Turkey
Burcu Fazl o Lu: Department of International Entrepreneurship, TOBB Economics and Technology University, Ankara, Turkey

International Journal of Economics and Financial Issues, 2016, vol. 6, issue 2, 776-781

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 Moments (search for similar items in EconPapers)
JEL-codes: D22 F23 H2 (search for similar items in EconPapers)
Date: 2016
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