• ISSN: 2010-023X
    • Frequency: Bimonthly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Executive Editor: Ms. Cherry L. Chen
    • Abstracting/ Indexing: Engineering & Technology Digital Library, ProQuest, Crossref, Electronic Journals Library, DOAJ , EBSCO, and Ulrich's Periodicals Directory
    • E-mail: ijtef@ejournal.net
IJTEF 2017 Vol.8(1): 44-50 ISSN: 2010-023X
DOI: 10.18178/ijtef.2017.8.1.537

Tonnage Tax Selection as a Means of Overcoming Economic Growth Problems

Bahar Berberoğlu
Abstract—Generally, all the countries have economic growth problems despite the growth in the world economy and globalization today. Low annual Real Gross Domestic Product (Real GDP) increases and insufficient investment rates are the most important problems. As a result of the growth in the world economy, the volume (tonnage) of foreign trade and marine transportation is continuously increasing. Many countries select the Tonnage Tax, which is a special tax regime, to develop the marine transportation sector with the purpose of increasing the insufficient growth and investment rates because of the strong positive relation between the tonnage demand of the countries and the economic growth rates. In our study, we therefore investigated the tax selections of 31 countries for marine transportation. We have chosen the Logit Model as the most significant of the models, which we formed by using the annual Real GDP increases and investment rates, according to the classification percentages. Thus, we have discovered that the countries without insufficient economic growth and investment rates don’t feel the need to select the tonnage tax regime, but the countries with such problems use the tonnage tax.

Index Terms—Tonnage tax regime, growth rate in real gross domestic product, logit model.

Bahar Berberoğlu is with the Department of Economic and Administrative Programs, Anadolu University and Open Education Faculty, Eskişehir, Turkey (e-mail: bdirem@anadolu.edu.tr).

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Cite: Bahar Berberoğlu, "Tonnage Tax Selection as a Means of Overcoming Economic Growth Problems," International Journal of Trade, Economics and Finance vol.8, no.1, pp. 44-50, 2017.

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