Theoretical and Applied Economics
No. 1 / 2018 (614), Spring
Impact of foreign direct investment inflows on tax revenues in OECD countries: A panel cointegration and causality analysis
Usak University, Turkey
Omer Faruk OZTURK
Usak University, Turkey
Abstract. Globalization process has led considerable increases in the global foreign direct investment flows especially as of mid-1980s. Foreign direct investment inflows have potential to affect economic growth, capital accumulation, human capital, competitiveness, development of finance sector and technological progress in the host country and in turn affects the tax revenues. In this study, we analyzed the relationship among foreign direct investment inflows, economic growth and total tax revenues in 33 OECD countries during 1995-2014 period using Westerlund- Durbin-Hausmann (2008) panel cointegration test and Dumitrescu and Hurlin (2012) panel causality test. We revealed a cointegrating relationship among foreign direct investment inflows, economic growth and total tax revenues Furthermore, there was one-way causality from foreign direct investment inflows to total revenues and bidirectional causality between economic growth and foreign direct investment inflows.
Contents
Political economy map – A useful tool for public policy decision makers
Macroeconomic uncertainty and FDI in developing countries
Impact of foreign direct investment inflows on tax revenues in OECD countries: A panel cointegration and causality analysis
Macroprudential stability indicators of financial systems: Analysis of Bosnia and Herzegovina and Croatia
Does exchange rate always affect the number of inbound tourists significantly in China?
The effects of Turkish-Russian political relations on bilateral trade balance: Cointegration and causal analysis
The relationship between financial deepening and economic growth: Bootstrap causality approach for the selected upper middle income countries
Financial development, trade openness and growth in India
The impact of carbon dioxide (CO2) emissions on tourism: Does the source of emission matter?
Effect of exchange rate policy on GDP and GDP components: The Kyrgyz Republic Case
Dynamic linkages between corruption, economic growth, and income inequality in Pakistan: Say ‘No’ to corruption
Impact of defence expenditures on external debt: An econometric analysis for Turkey and Turkic Republics