Analysis of the relationship between tax revenues of public investment expenditure in the regions in Turkey

According to the economic classification of public expenditures, three groups are allocated as current, investment and transfer expenditures. Most of the national and international studies show that investment spending in these expenditures has further increased the production and service potential. The increase in production and service capacity of investments leads to a rise in national income and employment rates. These positive effects of public investments on the economic and social side are positively reflected in the state's tax revenue and budget balance. When examining the positive economic and social impacts of public investments, it would not be enough to make an assessment based only on the amount of these expenditures. The use of investment spending in efficient and productive areas in terms of economic and social returns has critical importance. Previous work in this area is usually made to measure the economic efficiency of investment expenditures and the impact on economic growth in regions and countries. There is not enough domestic or foreign studies about the impact of public investments on tax collections. The goal of the study; to identify the contribution on tax revenue of public investments in various regions in Turkey as empirical and to find out sectors which are heavily publicly invested in regions where the efficiency of public investments is high in these areas. Sectors that have the feature of increasing tax collection will be determined and investments will be directed to these areas. Thus, it will be possible to use the resources of the public more efficiently and effectively. Panel data method in the study was used for to realize the stated purpose.