Abstract:

In the paper; the relationship between tax revenues and economic growth was examined using data of the 1960-2018 period. The stationarity of the series was investigated via unit root test with multiple structural breaks, while the presence of a cointegration relationship between the series was investigated via cointegration test with multiple structural breaks. Long and short term analyses were carried out using Canonical Regression Analysis Method. At the end of the study; it was determined that there was a mutual interaction between tax revenues and economic growth in Turkey, both in the short and the long term. According to the results acquired, as the economy grows, tax collection increases in parallel with the national income and as tax revenues increase, economic growth accelerates. On the basis of the results acquired; it can be stated that tax revenues in Turkey are used to support economic growth.

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