New Version of Economic Growth for Some EU Countries: Tax Discrimination-Oriented Foreign Direct Investment Hunt
This study analyzes the effects of foreign direct investments, which are claimed to be obtained through various regulations made by European Union member countries Luxemburg, Netherlands, Ireland and Belgium in the period of 2004-2013, on the economic growth of the subject countries; by comparing average values of European Union member countries. For as much as, these four subject countries achieved to attract different amounts of investments into their countries by taking advantages of gaps which take place in European Union legislation and they realized their economic growths thanks to the related investments. These four countries which are the members of European Union used the sovereign base areas of the countries and at the same time, they used taxational methods which concern European Union law, when they fulfilled their subject goals. However, today, the methods, which were used by the aforesaid countries in order to achieve the aim of increasing the economic growth, have been spotted by the European Union Commission. Despite this situation, at least the half of the countries, which are mentioned in our study, are unwilling to abandon their illegal economic growth strategies.
Keywords: Foreign Direct Investment, Economic Growth, Taxation.
Akkaya, Ş., & Pazarlıoğlu, M. (1998). Ekonometri-1[Econometrics-1]. İzmir: Anadolu Press.
Alfaro, L., & Charlton, A. (2007). Growth and the Quality of Foreign Direct Investment:Is All FDI Equal. CEP Discussion Papers , 2-43.
Borensztein, E., De Gregoria, J., & Lee, W. (1998). How does foreign direct investment affect economic growth? Journal of International Economics 45 , 115-135.
Charemza, W., & Deadman, D. (1999). New Directions in Econometric Practice (2.Edt b.). USA: Edward Publishing.
Çakıcı, M., Oğuzhan, A., & Özdil, T. (2003). Temel İstatistik-2 [Basic Statistics-2](4.Edt b.). İstanbul: Özal Press.
Durham, J. B. (2004). Absorptive Capasity and the Effets of Foreign direct Investment and Equity Foreign. European Economic Review , 48, 285-306.
Enders, W. (1998). Applie Econometric Time Series. New York, USA: John Wiley & Sons Incorporation.
Esso, L. J. (2010). Long-Run Relationship and Causality between Foreign Direct Investment and Economic Growth: Evidence from Ten African Countries. International Journal of Economics and Finance , 2 (2), 158-177.
Euronews. (2014,). Vergi cenneti Lüksemburg: Herkesin bildiği ‘sır’ nihayet belgelendi [Tax Heavens Luxemburg: Finally the Already Known ‘Secret’ Documented]. Retrieved from Euronews: http://tr.euronews.com/2014/11/06/
European Union. (1963). The EEC Reports on Tax Harmonization - The Report of The Fiscal and Financial Committee and The Reports of the Sub-Groups A, B and C. (D. Thurston, Trans.) Amsterdam: International Bureau of Fiscal Documentation.
European Union. (1997). Towards tax co-ordination in the European Union: A package to tackle harmful tax competition. Brussels: Commission Of The European Communities.
Granger, C. (1969). Investigating Causal Relations by Econometric Models and Cross-Spectral Methods. Econometrica (37), 553-560.
Gujaratı, D. (1999). Temel Ekonometri [Basic Econometrics]. (Ü. Şenesen, & G. Şenesen, Trans.) İstanbul: Literatür Publications.
Hürriyet. (2016). AB'den Belçika'da yasadışı vergi kararı [Illegal Tax Decision from EU in Belgium]. Retrieved from Hürriyet: http://www.hurriyet.com.tr/abden-belcikada-yasadisi-vergi-karari-40039002
Işığıçok, E. (1994). Zaman Serilerinde Nedensellik Çözümlemesi [Causality Analysis in Time Series]. Bursa: Uludağ University Printing House.
King, G. R., & Rebelo, S. (1990). Public Policy and Economic Growth: Developing Classical Implications. Nber Working Paper Series , 2-49.
Kır, M. (2011). Türkiye'de Büyüme ve İşsizlik Arasındaki İlişkinin Ampirik Analizi [Empirical Analysis of the Relationship between Growth and Unemployment in Turkey]. (H. Ü. Enstitüsü, Dü., & İ. A. Dalı, Derleyici) Unpublished Master Thesis.
Lensink, R., & Morrissey, O. (2001). Foreign Direct Investment: Flows, Voltility and Growth In Developing Countries. University of Groningen Working Papers , 1-28.
Marwah, K., & Tavakoli, A. (2004). The effect of foreign capital and imports on economic growth: further evidence from four Asian countries (1970–1998). Journal of Asian Economics , 15 (2), 399-413.
Merlevede, B., & Schoors, K. (2004). Reform, FDI and Economic Growth: Tale of the Tortoise and the Hare. William Davidson Institute Working Paper , 1-20.
Nair-Reichert, U., & Weinhold, D. (2001). Causality Tests for Cross-Country Panels: A New Look At FDI and Economic Growth in Developing Countries. Oxford Bullettin of Economics and Statistics , 63 (2), 153-171.
Ümit, Ö. (2007). Türkiye’de Bütçe Açığı ile Cari İşlemler Arasındaki İlişkilerin Zaman Serisi Analizi [Time Series Analysis of the Relationship between Fiscal Deficit and Current Accounts in Turkey]. (A. Üniversitesi, Derleyici) Unpublished Doctoral Study.
Zhang, K. H. (1999). How does FDI Interact With Economic Growth in a Large Developing Country? The Case of China. Economic Systems, 23 (4), 291-303.