An Analysis of the Relationship Between Taxation and Democracy: The Example of European Union Member and Candidate Countries (2010-2020)

The aim of this study is to examine the causal relationship between the level of democratization and tax revenues in the period of 2010- 2020 in 33 European Union (EU) member and candidate countries. The causal relationships between the variables were tested with the Emirmahmutoğlu-Köse (2011) panel...

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Main Authors: Yücel Demirkılıç, Fazlı Yıldız, Ersin Nail Sağdıç
Format: Article
Language:English
Published: Istanbul University Press 2023-08-01
Series:İktisat Politikası Araştırmaları Dergisi
Subjects:
Online Access:https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/8D5827E33CE94BC09B655ADDC44117AD
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author Yücel Demirkılıç
Fazlı Yıldız
Ersin Nail Sağdıç
author_facet Yücel Demirkılıç
Fazlı Yıldız
Ersin Nail Sağdıç
author_sort Yücel Demirkılıç
collection DOAJ
description The aim of this study is to examine the causal relationship between the level of democratization and tax revenues in the period of 2010- 2020 in 33 European Union (EU) member and candidate countries. The causal relationships between the variables were tested with the Emirmahmutoğlu-Köse (2011) panel causality test based on the Toda–Yamamoto (1995) test. According to the results of the analysis, bidirectional causal relationships were determined between the level of democratization and tax revenues based on the relevant countries and period throughout the panel. When evaluating the country-based causality results, one-way causal relationships from democratization level to tax revenues were found in Albania, Greece, Ireland, Moldova and North Macedonia; one-way causality from tax revenues to democratization level was found in Croatia, Cyprus, Lithuania, Luxembourg, Malta, Romania, and Slovenia; and bidirectional causal relationships were found between the level of democratization and tax revenues in Poland and Ukraine. In addition, no causal relationships were found between tax revenues and the level of democratization in Austria, Belgium, Bulgaria, Czechia, Denmark, Estonia, Finland, France, Germany, Hungary, Italy, Latvia, Netherlands, Portugal, Spain, Slovakia, Sweden, Serbia, or Türkiye. The empirical findings of the study indicate the causal relationship between the level of democratization and tax revenues to differ due to such things as the political, economic, social, and institutional characteristics of the countries.
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spelling doaj-art-7870b58a1d944c19bf87a9ddffb46f812025-08-20T01:50:31ZengIstanbul University Pressİktisat Politikası Araştırmaları Dergisi2148-38762023-08-0110245748310.26650/JEPR1220835123456An Analysis of the Relationship Between Taxation and Democracy: The Example of European Union Member and Candidate Countries (2010-2020)Yücel Demirkılıç0https://orcid.org/0000-0003-3643-1593Fazlı Yıldız1https://orcid.org/0000-0003-1387-7883Ersin Nail Sağdıç2https://orcid.org/0000-0002-4022-8515Kırklareli Üniversitesi, Kirklareli, TurkiyeBalıkesir Üniversitesi, Balikesir, TurkiyeKütahya Dumlupınar Üniversitesi, Kutahya, TurkiyeThe aim of this study is to examine the causal relationship between the level of democratization and tax revenues in the period of 2010- 2020 in 33 European Union (EU) member and candidate countries. The causal relationships between the variables were tested with the Emirmahmutoğlu-Köse (2011) panel causality test based on the Toda–Yamamoto (1995) test. According to the results of the analysis, bidirectional causal relationships were determined between the level of democratization and tax revenues based on the relevant countries and period throughout the panel. When evaluating the country-based causality results, one-way causal relationships from democratization level to tax revenues were found in Albania, Greece, Ireland, Moldova and North Macedonia; one-way causality from tax revenues to democratization level was found in Croatia, Cyprus, Lithuania, Luxembourg, Malta, Romania, and Slovenia; and bidirectional causal relationships were found between the level of democratization and tax revenues in Poland and Ukraine. In addition, no causal relationships were found between tax revenues and the level of democratization in Austria, Belgium, Bulgaria, Czechia, Denmark, Estonia, Finland, France, Germany, Hungary, Italy, Latvia, Netherlands, Portugal, Spain, Slovakia, Sweden, Serbia, or Türkiye. The empirical findings of the study indicate the causal relationship between the level of democratization and tax revenues to differ due to such things as the political, economic, social, and institutional characteristics of the countries.https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/8D5827E33CE94BC09B655ADDC44117ADtaxationdemocratizationpanel causality testeuropean uniontax policy
spellingShingle Yücel Demirkılıç
Fazlı Yıldız
Ersin Nail Sağdıç
An Analysis of the Relationship Between Taxation and Democracy: The Example of European Union Member and Candidate Countries (2010-2020)
İktisat Politikası Araştırmaları Dergisi
taxation
democratization
panel causality test
european union
tax policy
title An Analysis of the Relationship Between Taxation and Democracy: The Example of European Union Member and Candidate Countries (2010-2020)
title_full An Analysis of the Relationship Between Taxation and Democracy: The Example of European Union Member and Candidate Countries (2010-2020)
title_fullStr An Analysis of the Relationship Between Taxation and Democracy: The Example of European Union Member and Candidate Countries (2010-2020)
title_full_unstemmed An Analysis of the Relationship Between Taxation and Democracy: The Example of European Union Member and Candidate Countries (2010-2020)
title_short An Analysis of the Relationship Between Taxation and Democracy: The Example of European Union Member and Candidate Countries (2010-2020)
title_sort analysis of the relationship between taxation and democracy the example of european union member and candidate countries 2010 2020
topic taxation
democratization
panel causality test
european union
tax policy
url https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/8D5827E33CE94BC09B655ADDC44117AD
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