Abstract:

The effects of tax revenues, which have the highest proportion in public revenues, on economic growth can sometimes be positive and sometimes negative, and the nature and depth of this effect is determined by many variables. Within the scope of this study conducted for the G-7 countries, the effect of tax revenues on economic growth was analyzed using annual data for the years 1970-2020. As a result of the study using the Westerlund (2006) Panel Cointegration Test, which takes into account the structural breaks, a long-term relationship was determined between the variables in Canada, France, Germany, Italy, Japan and the USA, while there was no long-term relationship in the UK. In addition, in Canada, France and the USA, among the countries in which a cointegration relationship between tax revenues and economic growth has been determined, this relationship is negative; It was found to be positive in Germany, Italy and Japan.

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