THE EFFECT OF FOREIGN DIRECT INVESTMENTS ON CORPORATE TAX REVENUES: AN EMPIRICAL ANALYSIS FOR OECD COUNTRIES

Authors : Şeref Can SERİN, Murat DEMİR

Pages : 223-248

Doi:10.36543/kauiibfd.2023.009

View : 68 | Download : 36

Publication Date : 2023-06-26

Article Type : Research Paper

Abstract :Foreign direct investment insert ignore into journalissuearticles values(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

ORIGINAL ARTICLE URL