An Empirical Analysis of the Relationship Between Agricultural Revenue and Tax Burden

Abstract

The concept of total tax burden, derived by calculating the ratio of all taxes collected within a specific period to the Gross National Product (GNP), serves as a key indicator of a country's level of development and its fiscal policies. Agricultural revenue holds a significant position within the GNP. Another critical point is the scale of taxes generated from agricultural production. This study aims to empirically analyze the relationship between the tax burden and agricultural revenue. For this purpose, data from the Turkish economy covering the period from 1965 to 2022 has been utilized. The empirical analysis reveals a long-term cointegrated relationship between the series. According to the coefficient estimators, it was found that, for the period covered by the study, there is an inverse relationship between the tax burden and agricultural revenue. In other words, increases in the tax burden have been shown to decrease agricultural revenue.