THE EFFECT OF FOREIGN DIRECT INVESTMENTS ON CORPORATE TAX REVENUES: AN EMPIRICAL ANALYSIS FOR OECD COUNTRIES-Reference-Cited by-同舟云学术

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

Published:2023-06-26 Issue:27 Volume:14 Page:223-248
ISSN:1309-4289
Container-title:Kafkas Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi
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Author:

SERİN Şeref Can¹^ORCID,DEMİR Murat¹^ORCID

Affiliation:

1. HARRAN ÜNİVERSİTESİ, İKTİSADİ VE İDARİ BİLİMLER FAKÜLTESİ, MALİYE BÖLÜMÜ

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.

Publisher

Kafkas Universitesi Iktisadi ve Idari Bilimler Fakultesi Dergisi

Subject

Education,Cultural Studies

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