Avrupa Birliği Ülkeleri ve Türkiye’de Vergi Harcamalarının İktisadi Büyüme Üzerindeki Etkisi
Year: 2025
Type: article
Abstract: Taxes cause efficiency costs by creating distortions in the decisions of producers and consumers.However, some taxes may not be collected for economic, fiscal, and social reasons.This uncollected amount is referred to as tax expenditure, and the ratio of tax expenditures to GDP averages over 5 percent in Europe in 2024.It is expected that high tax expenditures with a negative tax multiplier will offset the negative effects of taxes on economic growth.This study examines the impact of tax expenditures on economic growth in European Union countries and Türkiye for the period 2010-2022, utilizing the pooled ordinary least squares (POLS) method.Tax expenditures are estimated to increase gross domestic product (GDP) by 0.4 percent on average.Despite the extremely high amount of tax expenditures, their impact on economic growth remains low.Another point is that a 1 percent increase in public expenditure reduces GDP by 0.14 percent on average.An increase in the money supply has a positive and significant effect on GDP.Foreign direct investment, on the other hand, reduces GDP by an average of 0.5 percent.It is worth noting that the increase in per capita income, a key indicator of prosperity and consumption, is directly reflected in GDP.A 1 percent increase in fixed capital stock increases GDP by 0.5 percent, while a 1 percent improvement in the current account balance increases GDP by an average estimated 0.4 percent.When the COVID-19 period is taken into account, no significant change is observed compared to the normal period, and the interaction term is statistically insignificant.Due to the limited impact of tax expenditures on economic growth, tax authorities regularly review these expenditures and their design to ensure efficient resource allocation and equitable income distribution.
Author: Hünkar GÜLER
Institution: Niğde Ömer Halisdemir Üniversitesi
Language: Turkish
Topic: Economic and Fiscal Studies
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7117432518