Does Foreign Capital Increase Tax Revenue: The Turkish Case

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 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.
International Journal of Economics and Financial Issues-Cover
  • Başlangıç: 2011
  • Yayıncı: İlhan ÖZTÜRK
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