The Effect of Corruption on the Tax Revenues: Case of EU Transition Economies

Authors : Ceyda TUNÇ YILANCI, Mahmut Ünsal ŞAŞMAZ

Pages : 73-84

View : 81 | Download : 66

Publication Date : 2023-07-26

Article Type : Research Paper

Abstract :From past to present, taxes, which are among one of the most important sources to supply governments public needs, confronts us a social, political, and economic phenomenon. These social, political, and economic phenomena, playing a key role in the determination of tax revenues, are decisive on the taxes, directly or indirectly. Many economic factors, such as financial development, growth, economic freedom, tax rate, and globalizing world. Conceptually, described as abusing public power or sources for private benefits, corruption has many economic effects. In this study, the relationship between corruption and tax revenues in 11 EU transition economies in the 2003-2015 period was analyzed using Westerlund and Edgerton insert ignore into journalissuearticles values(2007); panel cointegration test and Emirmahmutoğlu and Köse insert ignore into journalissuearticles values(2011); panel causality test. The results of this study show that there is a long – run relationship between corruption and tax revenues. Besides, we found a bi-directional causality relation between corruption and tax revenues.
Keywords : Yolsuzluk, Vergi Gelirleri, Panel Veri