Title: The effects of taxation on mobile phones: a panel data approach

Authors: Filiz Giray, Adnan Gercek, Ayse Oguzlar, Selim Tuzunturk

Addresses: Department of Public Finance, Faculty of Administrative and Economic Sciences, Uludag University, 16059, Bursa, Turkey. ' Department of Public Finance, Faculty of Administrative and Economic Sciences, Uludag University, 16059, Bursa, Turkey. ' Department of Econometrics, Faculty of Administrative and Economic Sciences, Uludag University, 16059, Bursa, Turkey. ' epartment of Econometrics, Faculty of Administrative and Economic Sciences, Uludag University, 16059, Bursa, Turkey

Abstract: The purpose of this paper is to investigate the effects of taxation on mobile phone service incomes under the auspice of the market penetration rate, using data from 14 Organisation for Economic Cooperation and Development (OECD) countries having a high tax rate on mobile phone services. In this study, a panel data approach was used in modelling mobile phone service revenues. The results show a significant and negative relationship between the tax rate and mobile phone service revenues. Therefore, the finding supports the hypothesis that taxes on mobile phones are one of the determinant factors of affordability of mobile phones for more people.

Keywords: mobile communications; mobile phones; cell phones; taxation; economic growth; panel data; service incomes; OECD; modelling; service revenues; tax rate; affordability.

DOI: 10.1504/IJMC.2009.024395

International Journal of Mobile Communications, 2009 Vol.7 No.5, pp.594 - 613

Available online: 02 Apr 2009 *

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