Economic Globalization, Taxation and Public Expenditures: Evidence From OECD Countries

Year 2024, , 203 - 220, 26.03.2024

Zeki Akbakay

https://doi.org/10.18657/yonveek.1240887

Abstract

Globalization shapes the fiscal policies of countries, leading to changes in the structure of taxation and public expenditures. According to the theory of international tax competition, as globalization increases, countries use their tax policies to attract more mobile factors, resulting in tax competition. This competition causes capital tax rates to decrease and labor tax rates to increase, which is known as the efficiency effect of globalization. On the other hand, governments expand the welfare state to compensate for the increased economic risks resulting from globalization. This is known as the compensation effect of globalization. The purpose of this paper is to empirically test these hypotheses using a dataset of 26 OECD countries from the period 1990-2020. The study employed the Driscoll-Kraay estimator, which produces reliable estimates with robust standard errors in the presence of heteroscedasticity, autocorrelation, and cross-sectional dependency issues. The results indicate that economic globalization has a negative effect on corporate tax rates and a positive effect on labour tax rates. Additionally, it was observed that a high level of social spending is linked to an increase in economic globalization. These results emphasise that the efficiency effect and the compensation effect coexist and complement each other rather than being rivals.
Key words: Globalization, tax competition, public expenditure, panel data
JEL Classification: E15, E62, C23

Keywords

Globalization, tax competition, public expenditure, panel data

Ekonomik Küreselleşme, Vergilendirme ve Kamu Harcamaları: OECD Ülkelerinden Kanıtlar

Abstract

ÖZ
Küreselleşme, ülkelerin maliye politikalarını şekillendirmekte ve dolayısıyla vergilendirme ve kamu harcamalarının yapısını değiştirmektedir. Uluslararası vergi rekabeti teorisine göre, küreselleşme arttıkça ülkeler vergi politikalarını daha hareketli faktörleri çekmek için kullanmakta ve böylece vergi rekabeti ortaya çıkmaktadır. Teori, bu rekabetin sermaye vergisi oranlarının düşmesine ve emek vergisi oranlarının artmasına neden olduğunu öne sürmektedir. Bu, küreselleşmenin verimlilik etkisidir. Öte yandan hükümetler, küreselleşme nedeniyle artan ekonomik riskleri telafi etmek için refah devletini genişletiyor. Bu, küreselleşmenin telafi edici etkisidir. Bu makalenin amacı, 1990-2020 dönemi için 26 OECD ülkesinden oluşan bir veri seti kullanarak bu hipotezleri ampirik olarak test etmektir. Çalışmada değişen varyans, oto-korelasyon ve yatay kesit bağımlılığı sorunları karşısında dirençli standart hatalarla tutarlı tahminler yapan Driscoll-Kraay tahmincisinden yararlanılmıştır. Bulgular, ekonomik küreselleşmenin kurumlar vergisi oranı üzerinde negatif, emek vergisi oranı üzerinde pozitif bir etkiye sahip olduğunu göstermektedir. Ayrıca, yüksek düzeyde sosyal harcamaların artan ekonomik küreselleşme ile ilişkili olduğu gözlenmektedir. Bu sonuçlar, verimlilik etkisinin ve telafi etkisinin bir arada var olduğunu ve bunların rakip değil, tamamlayıcı olduğunu göstermektedir.
Anahtar kelimeler: Küreselleşme, vergi rekabeti, kamu harcamaları, panel veri
JEL Sınıflandırması: E15, E62, C23

Keywords

küreselleşme, vergi rekabeti, kamu harcamaları, panel veri

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