Is There A Long-Run Relationship Between Taxation And Growth: The Case Of Turkey

This paper empirically investigates long-run equilibrium relationship between economic growth and tax revenues in Turkey by using the bounds test and Johansen technique for cointegration. Results suggest that the existence of long-run equilibrium relationship between economic growth and taxation cannot be confirmed in the case of Turkey as a result of the bounds and Johansen tests for cointegration. Thus, further investigation such as error-correction modeling and/or causality analysis cannot be preceded between these two variables in the case of the Turkish economy.taxation, growth, long-run relationship, Turkey

IZRAVNA STRANA ULAGANJA I GOSPODARSKI RAST U TURSKOJ: EMPIRIJSKO ISTRAŽIVANJE POMOĆU GRANIČNOG TESTA ZA KOINTEGRACIJU I TESTA KAUZALNOSTI

This paper empirically investigates the level relationship and the direction of causality between net foreign direct investment (FDI) inflows and economic growth in Turkey by using the bounds test for co-integration and Granger causality tests. Results suggest that both variables are in long-run equilibrium relationship only when FDI is dependent variable under the ARDL (auto-regressive distributed lag) modeling approach. Final investigation in the paper is that economic expansion in Turkey stimulates expansion in net FDI inflows.Rad empirijski istražuje razinu odnosa i smjer kauzalnosti između prihoda od izravnih stranih ulaganja (FDI) i gospodarskog rasta u Turskoj koristeći granični test za kointegraciju i Grangerov test kauzalnosti. Rezultati ukazuju na to da su obje varijable u dugotrajnom uravnoteženom odnosu samo kad su izravna strana ulaganja ovisna varijabla po ARDL (autoregresijski model s distribuiranim vremenskim pomakom) pristupu. Zaključak rada je da gospodarska ekspanzija u Turskoj stimulira ekspanziju neto priljeva od izravnih stranih ulaganja

Financial Development, Trade and Growth Triangle: The Case of India

The file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link.This paper aims to investigate the possible co‐integration and the direction of causality between financial development, international trade, and economic growth in India. Annual data covering the 1965‐2004 period have been used to investigate co‐integration and Granger causality tests between financial development, international trade, and growth after employing unit root tests to see if the variables under consideration are stationary. Results reveal that there is a long‐run equilibrium relationship between financial development, international trade and real income growth in the case of India. Furthermore, unidirectional causality was investigated that runs from real income to exports and imports, from exports to imports, M2 and domestic credits, from M2 to imports, from imports to domestic credits. Bidirectional causality has also been obtained between real income and M2, and between real income and domestic credits. Finally, no direction of causality has been obtained between M2 and domestic credits. This study has shown that the supply‐leading and the demand‐following hypotheses cannot be inferred for the Indian economy alone themselves. And furthermore, the export‐led and the import‐led hypotheses again cannot be inferred for the Indian economy based on the sample period, 1965‐2004. This study is the first of its kind, which investigates the possible co‐integration and the direction of causality between the financial development, international trade and economic growth triangle not only in the case of India but also in the relevant literature to the best of one's knowledge

Trade and Growth in the Pacific Islands - Empirical Evidence from the Bounds Test to Level Relationships and Granger Causality Tests

Although the relationship between international trade and economic growth has found a wide application area in the literature over the years, further attention is needed for small island economies. This study employs the bounds test for Level Relationships and Granger causality tests to investigate a long-run equilibrium relationship between international trade and real income growth, and the direction of causality among themselves in three selected Pacific Islands: Fiji, Papua New Guinea and Solomon Islands. Results reveal that a long run equilibrium relationship can be inferred between international trade and economic growth in the case of Fiji and Solomon Islands whereas economic growth is cointegrated only with exports of goods and services in Papua New Guinea. Granger causality test results show that there are bidirectional causality between exports and economic growth, and between exports and imports in Fiji Islands. Economic growth in Solomon Islands stimulates a growth in exports of goods and services, and exports stimulates a growth in imports of goods and services. No causal relationship has been obtained between international trade (both exports and imports) and economic growth in the case of Solomon Islands. The major finding of this study is that trade-led growth hypothesis cannot be inferred for the Pacific Islands.economic growth, long-run equilibrium relationship, Granger causality test

Dugoročni odnos ravnoteže između međunarodnog turizma, višeg obrazovanja i gospodarskog rasta u Sjevernom Cipru

The relationship between internatiomal tourism and economic growth deserves further attention compared to tourism demand models over the years. This study employs the bounds test for co-integration and Granger causality tests to investigate a long-run equilibrium relationship between international tourism, higher education sector, and real income growth, and the direction of causality among themselves for the Turkish Republic of Northern Cyprus (TRNC), which is not recognized by countries other than Turkey. Results reveal that international tourism and higher education are in long-run equilibrium relationship with real income growth. The major finding of this study is that although TRNC suffers from political non-recognition and emgargoes since 1974, real income growth is stimulated by growth in international tourism and higher education sector as found from Granger causality tests.Veza međunarodnog turizma i gospodarskog rasta zaslužuje daljnju pažnju u usporedbi s modelima turističke potražnje tijekom godina. Istraživanje koristi bounds test za kointegraciju i Grangerove testove kauzalnosti kako bi se istražio dugoročni odnos ravnoteže međunarodnog turizma, sektora višeg obrazovanja i rasta realnog prihoda, te pravca kauzalnosti među njima za Tursku Republiku Sjeverni Cipar (TRNC) koju u međunarodnoj zajednici priznaje samo Turska. Rezultati pokazuju da se međunarodni turizam i više obrazovanje nalaze u odnosu dugoročne ravnoteže s rastom realnog prihoda. Najznačajniji nalaz ovog istraživanja je da iako TRNC nije politički priznata i pod embargom je od 1974., rast realnog prihoda je stimuliran rastom međunarodnog turizma i sektorom višeg obrazovanja kako pokazuju Grangerovi testovi kauzalnosti

The Role of Ethical Leadership in Psychological Capital and Job Satisfaction of Immigrant Workers: Evidence From the Hotel Industry of Cyprus

The goal of this research is to figure out the moderating act of ethical leadership on the effects of job satisfaction and psychological capital of employees. The Hotel industry in Northern Cyprus has been preferred with this respect. The study was conducted within the appropriate literature. Research-oriented data collection tools designed and used in accordance with the purposes of the research, research questions and hypotheses are surveyed. The findings of the study revealed the moderating role of ethical leadership (EL) on psychological capital (PsyCap) and job satisfaction (JS). It was also found that the participants were on the idea of working under equal conditions adopted via ethical leadership factors. The current study is a new era for the developmental issues of hospitality in terms of management and it is hoped that it will yield basic basements for further studies.publishedVersio

Interactions between business conditions, economic growth and crude oil prices

This study aims to research the empirical relationship between business conditions (BCs) and crude oil prices by employing a time series analysis for a panel of regions. BCs have been proxied by real income and real industrial production (IND) as advised in the relevant literature. Results suggest that economic activity and industrial value added are in a long-term relationship with oil price movements in the selected countries and regions. Gross domestic product (GDP) and IND are significantly affected by oil prices worldwide. Real income converges to long-term paths significantly, but at low levels through the channel of oil price movements. Oil price has a negative impact on business activities in some countries while it has a positive impact in others. Therefore, the sign of coefficient of oil prices on business conditions has found significant in this research study

Revisiting the environmental Kuznets curve hypothesis in a tourism development context

This study investigates empirically an extended version of the Environmental Kuznets Curve model that controls for tourism development. We find that international tourist arrivals into Turkey alongside income, squared income and energy consumption, cointegrate with CO2 emissions. Tourist arrivals, growth, and energy consumption exert a positive and significant impact on CO2 emissions in the long-run. Our results provide empirical support to EKC hypothesis showing that at exponential levels of growth, CO2 emissions decline. The findings suggest that despite the environmental degradation stemming from tourism development, policies aimed at environmental protection should not be pursued at the expense of tourism-led growth