Abstract:

The fiscal dimension of economic competition linked to globalization also brings the problem of the effectiveness of financial policies. While tax competition is used as a policy tool for tax incentives, the effects of incentives on direct foreign investments and economic growth are uncertain. While tax incentives cause the tax system to become a complex state, tax administration also raises the problem of compliance with the tax system. On the other hand, along with the economic conditions within the countries, political, political, bureaucratic, infrastructure, technological, etc. differences can have different effects on the functioning of the system and tax rates and tax incentives can also be effective. In this study we have done for OECD countries, we have found that tax incentives, as well as the indicators listed in the "Easy to Work" report, can also be effective in direct foreign investments to the country's economy.

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