Indirect-Direct Tax Separation in Tax and Growth Interaction in Turkey

In the study, the relationship between indirect and direct taxes and growth in Turkey was investigated using data from 2006:1-2020: 3 quarters. In econometric analyses, the existence of a positive and significant relationship between tax components and growth in both the long and short term was determined. According to the findings, indirect taxes are more effective on growth without distinction of time. While growth is the cause of indirect and direct taxes, a bidirectional causal link between indirect taxes and growth has been determined. The error correction coefficient was statistically significant and showed that deviations that will occur in the short period will converge in less than a quarter over the long period.