The Effect of Direct and Indirect Taxes on Economic Growth in the Turkish Economy: the Ardl Boundary Test Approach

Abstract

Taxes constitute the majority of the revenue sources of the government. Taxes can be levied on income and wealth, as well as on the purchase and sale of goods and services. Taxes levied on income directly effect disposable income, while indirect taxes effect the prices of goods and services. Taxes collected by the government are one of the determining parameters for economic growth. 3 Models have been created for the Turkish economy by taking quarterly data for the period 2006: Q1-2022: Q4. As a result of the ARDL boundary test analysis, the existence of a long-term relationship was determined for all 3 models. While direct taxes have a negative impact on economic growth, indirect taxes have a positive impact on economic growth. Special consumption tax and motor vehicle tax have a positive effect on economic growth, while corporate tax has a negative effect on economic growth. In addition, as a result of the Toda-Yamamoto causality test, a bidirectional causality relationship has been found between indirect tax, direct tax, and economic growth, a causality relationship has been found between the special consumption tax and economic growth, a causality relationship has been found between corporate tax and economic growth.

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Probability Modeling of Exchange Rate Fluctuation in Nigeria

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