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

Year 2023, , 223 - 248, 26.06.2023

Şeref Can Serin , Murat Demir

https://doi.org/10.36543/kauiibfd.2023.009

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.

Keywords

Foreign Direct Investments, Corporate Tax Revenue, Dynamic Panel Data Analysis

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

Abstract

Doğrudan yabancı yatırımlar (DYY), 1980’li yıllarla birlikte finansal piyasaların giderek artan oranda liberalleşmesi, döviz kuru kontrollerinin azaltılması, sermayenin mobilizasyonunun artması ve teknolojik gelişmelere paralel olarak küresel ölçekte artış göstermiştir. DYY’ler makro ve mikro ölçekli birçok pozitif etki sunmaktadır. Bu kapsamda gelişmiş ülkelerin yanı sıra özellikle gelişmekte olan ülkeler açısından ihtiyaç duyulan tasarruf açığını kapatma, finansal istikrarı sağlama, ekonomik büyüme hedeflerini gerçekleştirme ve sosyal refahı artıma gibi nedenlerle DYY’ler akademik çevrelerin ve politika yapıcıların ilgi odağı olmuştur. Dolayısıyla hükümetler, DYY’ler için vergi indirimleri/avantajları ve mali mevzuatlarda bürokratik kolaylıklar sağlayarak cazip birer yatırım alanı oluşturma eğilimi sergilemektedirler. Bu yönüyle DYY’lerin, vergi gelirleri üzerindeki etkisi ve boyutu önemli bir soru haline gelmektedir. Bu çalışma kapsamında sistem-GMM tahmincisi kullanılarak 2005-2020 döneminde 35 OECD üyesi ülkede DYY’lerin kurumlar vergisi üzerindeki etkisi incelenmiş, sonuçta söz konusu ilişkinin sınırlı düzeyde ancak negatif yönde olduğu anlaşılmıştır.

Keywords

Doğrudan yabancı yatırımlar, kurumlar vergisi gelirleri, dinamik panel veri analizi

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