Does More Globalization Mean More Tax Revenue?: Long-run Evidence From Turkey

Abstract

In this study, we investigate the long-run relationship between globalization and tax revenue in Turkey by using ARDL method and annual dataset spanning from 1972 to 2018. Our hypothesis claim that higher degree of globalization leads to collection of more tax revenue in Turkey in the long run. ARDL boundary test results disclose that globalization and tax revenue are co-integrated and thus they move together in the long run. Moreover, estimation results of long-run coefficients imply that there is a statistically significant positive relationship between globalization and tax revenue in Turkey in the long-run. In other words, higher degree of globalization means collection of more tax revenue in Turkey.