- Kafkas Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi
- Vol: 14 Issue: 27
- THE EFFECT OF FOREIGN DIRECT INVESTMENTS ON CORPORATE TAX REVENUES: AN EMPIRICAL ANALYSIS FOR OECD C...
THE EFFECT OF FOREIGN DIRECT INVESTMENTS ON CORPORATE TAX REVENUES: AN EMPIRICAL ANALYSIS FOR OECD COUNTRIES
Authors : Şeref Can Serin, Murat Demir
Pages : 223-248
Doi:10.36543/kauiibfd.2023.009
View : 35 | Download : 32
Publication Date : 2023-06-26
Article Type : Research Article
Abstract :Foreign direct investment (FDI) increased globally in the 1980s, parallel to the increasing liberalization of financial markets, the reduction of exchange rate controls, increased capital mobilization, and accelerated technological developments. FDIs offer versatile macro and micro scale positive effects to the host economies. In this context, FDIs have been the focus of academicians and policymakers for reasons such as filling the domestic savings gap, providing financial stability, achieving economic growth targets, and increasing social welfare, which is needed for developing and developed countries. Therefore, governments tend to build attractive investment zones for FDIs by providing tax cuts/advantages and bureaucratic conveniences in financial legislation. In this study, using system-GMM estimator, the effect of FDIs on corporate tax revenues for 35 OECD member countries in the 2005-2020 period was examined and it was understood that the said effect was limited but negative.Keywords : Doğrudan yabancı yatırımlar, kurumlar vergisi gelirleri, dinamik panel veri analizi