The impact of tax incentives on GDP in Turkey

Abstract

This article investigates the effectiveness of tax incentives in promoting sustained economic growth in Turkey – a topic marked by ongoing debate and uncertainty. With tax incentives widely employed to stimulate economic activity and attract investments, there is a critical need to assess their impact on the Turkish economy. Amidst challenges faced by the Turkish economy, the research unfolds dual objectives – advocating for tax incentives as economic stimulants while acknowledging concerns about potential reductions in government revenue. The study aims to scrutinize current tax incentive policies, evaluating their success in achieving intended objectives while balancing economic growth with government revenue sustainability. Through a rigorous empirical analysis, the research endeavors to contribute novel insights to the existing knowledge base, shedding light on the intricate relationship between tax incentives and economic growth. The research employs rigorous empirical analysis as its primary methodology. By scrutinizing the intricate relationship between tax incentives and GDP as the main indicator of economic growth, the study seeks to unravel patterns, implications, and potential trade-offs associated with these fiscal policies. The significance of the study extends to the broader discussion on macroeconomic stability, offering valuable insights for evidence-based policymaking on a global scale. As Turkey's strategic position in global trade and economic integration is paramount, understanding the impact of tax incentives becomes pivotal. The study's outcomes may guide not only Turkish policymakers but also those engaged in regional economic partnerships, promoting collective growth and development.