OFFICIAL DEVELOPMENT ASSISTANCE TAX REVENUE RELATION: ANALYSIS OF THE CROWDING OUT EFFECT in PARTICULAR TURKEY
Abstract
Official Development Assistance has been shown to increase the interest, because of the importance given to development increased after World War II, in especially developing countries which are lack of domestic resources to finance their development. While these aids are a major source of financing for governments, especially in developing countries, they have positive or negative effects on fiscal policy when allocating aids. For this reason, at the end of the 1990s, the efficiency of aid and whether it was used by countries for the right purposes began to be questioned.
The purpose of this study is to determine whether the Official Development Assistance has any crowding out effect on tax revenues in particular Turkey. However, the aids were divided into components and analyzed separately as grants and loans. In the study in which the ARDL limit test method was used, has benefited Turkey’s 1984-2016 period data. As a result of the analysis, it was found that the net official development assistance of the previous period reduced the total tax revenues by 3.43%, it is seen that the net official development assistance two periods ago reduced the total tax revenues by 4.79%, and the net official development assistance three periods ago decreased the total tax revenues by 2.74%. In the long run term, it is seen that net official development assistance has a negative and statistically significant effect on total tax revenues.
Although official development loans in the previous period negatively affect the total tax revenues in the short term, this effect is not statistically significant. In the long run term, official development loans have a negative effect on total tax revenues, and this effect is statistically significant.
In the short run term, official development grants from the previous period have a positive effect on total tax revenues, but this effect is not statistically significant. In the long run term, it is seen that official development grants have a very small positive and statistically significant effect on total tax revenues.
References
- Alonso, J. A., & Garcimartín, C. (2011). Does aid hinder tax efforts? More evidence. CREDIT Research Paper, 1-35.
- Bauer, P. S. (1976). Dissent on Development: Studies and Debates in Development Economics. Cambridge: MA: Harvard University Press.
- Benedek, D., Crivelli, E., Gupta, S., & Muthoora, P. (2014). Foreign Aid and Revenue: Still a Crowding-Out Effect? FinanzArchiv / Public Finance Analysis , Vol.70, No. 1, 67-96.
- Besley, T., & Persson, T. (2013). Taxation and Development. R. C. Alan Auerbach içinde, Handbook of Public Economics, Volume 5 (s. 51-110).
- Brautigam, D. (1992). Governance, Economy, and Foreign Aid. Studies in Comparative International Development 27(3), 3-25.
- Brautigam, D., & Knack, S. (2004). Foreign Aid, Institutions, and Governance in Sub-Saharan Africa. Economic Development and Cultural Change 52.
- Burnside, C., & Dollar, D. (1997). Aid, Policies, and Growth. Policy Research Working Paper #1777, World Bank.
- Clist, P., & Morrissey, O. (2011). AID AND TAX REVENUE: SIGNS OF A POSITIVE EFFECT SINCE THE 1980s. Journal of International Development,J. Int. Dev. 23., 165-180.
- Combes, J.-L., Ouedraogo, R., & Tapsoba, S. (2016). What Does Aid Do to Fiscal Policy? New Evidence. IMF Working Paper No. 16/112.
- Eş, G. (2014). Kalkınmanın Finansmanında Vergilemenin Önemi: Japonya ve Türkiye Kalkınma Deneyimleri Üzerine Bir İnceleme, 153-170.
- Gambaro, L., Meyer-Spasche, J., & Rahman, A. (2007). Does Aid Decrease Tax Revenue in Developing Countries? Londra: The London School of Economics and Political Science.
- Ghura, D. (1998). Tax Revenue in Sub-Saharan Africa: Effects of Economic Policies and Corruption. Washington: International Monetary Fund, IMF Working Paper 98/135.
- Gupta, S., Clements, B., Pivovarsky, A., & Tiongson, E. R. (2003). Foreign Aid and Revenue Response: Does The Composition of Aid Matter? International Monetary Fund.
- Heller, P. S. (1975). A Model of Public Fiscal Behaviour in Developing Countries: Aid, Investment, and Taxation. American Economic Review 65 (3).
- Kaldor, N. (1963). Will Underdeveloped Countries Learn to Tax? Foreign Affairs.
- Khan, H. A., & Hoshino, E. (1992). Impact of Foreign Aid on the Fiscal Behavior of LDC Governments. WorldDevelopment, Vol. 20, No. 10, 1481-1488.
- Kimbrough, K. P. (1986). Foreign Aid and Optimal Fiscal Policy. Canadian Journal of Economics 19(1).
- Knack, S. (2009). Sovereign rents and quality of tax policy and administration. Journal of Comparative Economics, 37, 359-371.
Abstract
Kalkınmaya verilen önemin II. Dünya Savaşı sonrası artmasıyla beraber, özellikle gelişmekte olan ülkelerin kalkınmalarını finanse edebilecek yurt içi kaynaktan yoksun olmaları Resmi Kalkınma Yardım’larına gösterilen ilgiyi arttırmıştır. Söz konusu yardımlar az gelişmiş ve gelişmekte olan ülkelerde hükümetler için büyük bir finansman kaynağı olma özelliği gösterirken, yardımlar tahsis edilirken maliye politikası üzerinde olumlu veya olumsuz etkiler meydana getirmektedir. Bu nedenle, 1990’ların sonunda yardımların verimliliği ve ülkeler tarafından doğru amaçlar için kullanılıp kullanılmadığı sorgulanmaya başlanmıştır.
Bu çalışmanın amacı, Türkiye özelinde Resmi Kalkınma Yardım’larının vergi gelirleri üzerinde herhangi bir dışlama etkisi yaratıp yaratmadığını tespit etmektir. Bununla birlikte yardımlar bileşenlerine ayrıştırılarak hibeler ve krediler olarak ayrı ayrı incelenmiştir. ARDL sınır testi yönteminin kullanıldığı çalışmada 1984-2016 dönemi Türkiye verilerinden faydalanılmıştır. Yapılan analizler neticesinde, kısa dönemde bir dönem önceki net resmi kalkınma yardımlarının toplam vergi gelirlerini %3,43, iki dönem önceki net resmi kalkınma yardımlarının toplam vergi gelirlerini %4,79 ve üç dönem önceki net resmi kalkınma yardımlarının toplam vergi gelirlerini %2,74 düşürdüğü görülmektedir. Uzun dönemde ise net resmi kalkınma yardımlarının toplam vergi gelirleri üzerinde negatif ve istatistiksel olarak anlamlı bir etkisi olduğu görülmektedir.
1984-2016 dönemini kapsayan çalışmada, kısa dönemde bir dönem önceki dönemdeki resmi kalkınma kredileri toplam vergi gelirlerini negatif etkilemekle birlikte bu etki istatistiksel olarak anlamlı değildir. Uzun dönemde ise resmi kalkınma kredileri, toplam vergi gelirlerini negatif etkilemektedir ve bu etki istatistiksel olarak anlamlıdır.
Kısa dönemde bir dönem önceki resmi kalkınma hibelerinin toplam vergi gelirleri üzerinde pozitif bir etkisi bulunmakla birlikte bu etki istatistiksel olarak anlamlı değildir. Uzun dönemde ise resmi kalkınma hibelerinin toplam vergi gelirleri üzerinde çok çok küçük de olsa pozitif ve istatistiksel olarak anlamlı bir etkisi olduğu görülmektedir.
References
- Alonso, J. A., & Garcimartín, C. (2011). Does aid hinder tax efforts? More evidence. CREDIT Research Paper, 1-35.
- Bauer, P. S. (1976). Dissent on Development: Studies and Debates in Development Economics. Cambridge: MA: Harvard University Press.
- Benedek, D., Crivelli, E., Gupta, S., & Muthoora, P. (2014). Foreign Aid and Revenue: Still a Crowding-Out Effect? FinanzArchiv / Public Finance Analysis , Vol.70, No. 1, 67-96.
- Besley, T., & Persson, T. (2013). Taxation and Development. R. C. Alan Auerbach içinde, Handbook of Public Economics, Volume 5 (s. 51-110).
- Brautigam, D. (1992). Governance, Economy, and Foreign Aid. Studies in Comparative International Development 27(3), 3-25.
- Brautigam, D., & Knack, S. (2004). Foreign Aid, Institutions, and Governance in Sub-Saharan Africa. Economic Development and Cultural Change 52.
- Burnside, C., & Dollar, D. (1997). Aid, Policies, and Growth. Policy Research Working Paper #1777, World Bank.
- Clist, P., & Morrissey, O. (2011). AID AND TAX REVENUE: SIGNS OF A POSITIVE EFFECT SINCE THE 1980s. Journal of International Development,J. Int. Dev. 23., 165-180.
- Combes, J.-L., Ouedraogo, R., & Tapsoba, S. (2016). What Does Aid Do to Fiscal Policy? New Evidence. IMF Working Paper No. 16/112.
- Eş, G. (2014). Kalkınmanın Finansmanında Vergilemenin Önemi: Japonya ve Türkiye Kalkınma Deneyimleri Üzerine Bir İnceleme, 153-170.
- Gambaro, L., Meyer-Spasche, J., & Rahman, A. (2007). Does Aid Decrease Tax Revenue in Developing Countries? Londra: The London School of Economics and Political Science.
- Ghura, D. (1998). Tax Revenue in Sub-Saharan Africa: Effects of Economic Policies and Corruption. Washington: International Monetary Fund, IMF Working Paper 98/135.
- Gupta, S., Clements, B., Pivovarsky, A., & Tiongson, E. R. (2003). Foreign Aid and Revenue Response: Does The Composition of Aid Matter? International Monetary Fund.
- Heller, P. S. (1975). A Model of Public Fiscal Behaviour in Developing Countries: Aid, Investment, and Taxation. American Economic Review 65 (3).
- Kaldor, N. (1963). Will Underdeveloped Countries Learn to Tax? Foreign Affairs.
- Khan, H. A., & Hoshino, E. (1992). Impact of Foreign Aid on the Fiscal Behavior of LDC Governments. WorldDevelopment, Vol. 20, No. 10, 1481-1488.
- Kimbrough, K. P. (1986). Foreign Aid and Optimal Fiscal Policy. Canadian Journal of Economics 19(1).
- Knack, S. (2009). Sovereign rents and quality of tax policy and administration. Journal of Comparative Economics, 37, 359-371.
Details
| Primary Language | Turkish |
|---|---|
| Journal Section | Makaleler |
| Authors | |
| Publication Date | May 7, 2021 |
| Submission Date | March 25, 2021 |
| Published in Issue | Year 2021 |
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