Relationship between Direct-Indirect Tax Revenues and Gross Domestic Product in Turkey

Terzi H., Yurtkuran S.

MALIYE DERGISI, no.171, pp.19-33, 2016 (ESCI) identifier

  • Publication Type: Article / Article
  • Volume: Issue: 171
  • Publication Date: 2016
  • Journal Name: MALIYE DERGISI
  • Journal Indexes: Emerging Sources Citation Index (ESCI), TR DİZİN (ULAKBİM)
  • Page Numbers: pp.19-33
  • Karadeniz Technical University Affiliated: Yes


This study employed the TY/U-VAR causality methods to analyze the relationship between direct (D) and indirect tax revenues (I) and gross domestic product (Y) in Turkey by using annual data from 1980 to 2013. According to the VAR causality results; there is a two-way causality relationship between D and Y; positive causality from Y to D and negative causality from D to Y. The variance decomposition analyses on 15-year average also show that D (I) explains 13% and 30% (1% and %6) of the variance of Y, and Y explains 32% and 34% (21% and 23%) of the variance of D (I).