A RESEARCH ON RELATIONSHIP BETWEEN TAX REVENUES AND SOCIAL DEMOGRAPHY: A COMPARISON OF BOSNIA AND TURKEY

Abstract

Tax revenue is one of the common issues of both public administration and public law. The tax system is an important phenomenon that shows not only the income and cash flow of the country, but also the functioning of the legal system and justice within the country. In this study, the population of Bosnia and Herzegovina and tax revenues in Turkey aimed to investigate the relationship of the demographic structure. For this purpose, the data obtained from the World Bank for the last twenty years, the gender, age ratio of the population and some demographic variables for both countries, urban and rural population rates are associated with tax revenues. In the study, Kolmogorov Smirnov Test was used for the normality test of data, Mann Whitney U was used for the non-normally distributed data and Independent Sample Ttest for the normally distributed data. Correlation and regression analysis and Granger Causality Test were performed for both countries. According to the results of the study, changing demographic variables affect indirectly even if they are not directly influential in affecting tax revenues. Therefore, in order to ensure fairness in tax distribution and the allocation of a more effective tax distribution system, a tax system that takes into account demographic variables and evaluates regional and social differences in a better way is needed. Although Turkey to Bosnia and Herzegovina in accordance with a more comprehensive macroeconomic structure, Bosnia and Herzegovina has a more regular distribution of the tax system.