Investigation of the co-integration of indirect and direct taxes with national income: Turkey 1925-2017 period

The aim of this thesis study is to analyze the impact of tax revenues on GDP in Turkey using time series data from 1925 to 2017. In the study, the concept of tax was examined first. The characteristics and types of taxes are specified. Taxes in according to legislation in Turkey are also explained. The distribution of taxes in total tax revenues is illustrated by indirect taxes and direct taxes. The effects of taxes on economic growth have been addressed. In the econometric part of the study, the relationship between 1925-2017 GDP growth and co-integration using ARDL border testing, variables for indirect tax growth and direct tax growth were investigated. ADF unit root test was used for the study's static analysis. Co-integration was detected in the period 1925-2017. After the presence of co-integration, co-integration analysis was carried out on sub-periods 1925-1983 and 1984-2017. As a result of the study, the relationship of co-integration was determined in the sub-period 1925-1983, while co-integration could not be detected in the sub-period 1984-2017.