scholarly journals Tax Revenue and Economic Growth in Nigeria

2018 ◽  
Vol 5 (7) ◽  
pp. 72
Author(s):  
ASAOLU Taiwo Olufemi ◽  
OLABISI Jayeola ◽  
AKINBODE Sakiru Oladele ◽  
ALEBIOSU Omolabake Naimot
Keyword(s):  
Economic Growth ◽  
Tax Evasion ◽  
Significant Relationship ◽  
Value Added ◽  
Secondary Data ◽  
Annual Reports ◽  
Tax Revenue ◽  
Distributed Lag ◽  
Significant Relationships ◽  
Auto Regressive

<p>The study examined the relationship between tax revenue and economic growth in Nigeria. The study adopted a descriptive and historical research design; secondary data for twenty-two years (1994 -2015) were collected from various issues of the Central Bank of Nigeria (CBN) statistical bulletin and annual reports. Tax revenue as an independent variable was measured with Value Added Tax (VAT); Petroleum Profit Tax (PPT); Company Income Tax (CIT) and Custom and Excise Duties (CED) while the dependent variable was Economic Growth (EG) proxied by the Gross Domestic Product (GDP). Analysis was performed on data collected using Auto Regressive Distributed Lag (ARDL) Regression and other post estimations (Jarque-Bera test; Breusch-Godfrey LM and Ramsey Reset Test) to determine the existence of relationship between the variables.  The results of the study showed that VAT and CED had a significant relationships with economic growth (p&lt;0.05), while CIT has negative significant relationship with economic growth (P&lt;0.05). However, PPT had no significant relationship with economic growth.  The study concluded that the role of taxation in nation’s building is irreplaceable. Taxation remains a strong socio political and economic tool for economic prosperity. It is therefore recommended that government should engage in a complete re-organization of tax administrative machinery to reduce incidence of tax evasion and avoidance to the barest minimum in order to improve tax revenue and bring more people and establishments into the tax net. Also, tax revenue should be judiciously utilized to provide enabling environment for business survival and economic growth in Nigeria.</p>

Government revenue and economic growth of Pakistan (1979 – 2017)

2020 ◽  
Vol 38 (3) ◽  
Author(s):  
Wajahat Rehman ◽  
Raza Ali Khan ◽  
Shazia Kousar
Keyword(s):  
Economic Growth ◽  
Significant Relationship ◽  
Secondary Data ◽  
Forecasting Model ◽  
Tax Revenue ◽  
Government Revenue ◽  
Distributed Lag ◽  
Revenue Sources ◽  
Long Run ◽  
Short Run

The study is conducted to identify the relationship between economic growth of Pakistan and government revenue sources – i.e. Tax Revenue, Non-tax Revenue and Additional Receipts, while measuring the change in economic development occurs due to change in government revenue sources in short-run as well as in long-run. Autoregressive Distributed Lag (ARDL) is performed on time series secondary data for the period from 1979 to 2017 and a forecasting model is developed to anticipate change in economic growth due to change in government revenue sources. Results concluded that Tax Revenue has positive significant relationship and Additional Receipts have negative significant relationship, however, Non-tax Revenue has positive insignificant relationship with economic growth of Pakistan in long-run, whereas no short-run relationship is identified among dependent and independent variables. The analysis indicated that 1% change in Tax Revenue results in 1.24% change in economic growth in the same direction, whereas 1% change in Additional Receipts results in 0.18% change in opposite direction in economic growth of Pakistan in long-run. However, evidences showed that in recent years, government has increased its dependency on the Additional Receipts as compared to Tax Revenue and Non-tax Revenue. For prosper and accelerated economic growth, it is suggested that policy makers should focus on increasing the revenue collection from Tax Revenue sources since economic growth of Pakistan is positively influenced by Tax Revenue and minimize dependency on the Additional Receipts as it hinders the economic growth. Proposed forecasting model provides promising results and projected the gross domestic product (GDP) for year 2018 with mare 0.32% and 4.44% deviation in logarithm value and rupee values, respectively.

scholarly journals Tax Revenue and Nigeria Economic Growth

2020 ◽  
Vol 3 (1) ◽  
pp. 30
Author(s):  
Emmanuel Onoja Eneche ◽  
Ibrahim Ademu Stephen
Keyword(s):  
Economic Growth ◽  
Tax Evasion ◽  
Significant Relationship ◽  
Income Tax ◽  
Computer Software ◽  
Value Added ◽  
Tax Revenue ◽  
Value Added Tax ◽  
Goods And Services ◽  
Short Run

This study examines the relationship between Tax Revenue and Nigeria Economic Growth. In order to achieve this objective, data was gathered through secondary means. Tax Revenue is proxy by Petroleum Profit Tax, Value Added Tax and Companies Income Tax, while Economic Growth is proxy by Gross Domestic Product. Data collected were analyzed with the aid of the Stata computer software. The study revealed that Petroleum Profit Tax (oil tax revenue) has a positive but no significant relationship with Nigeria Economic Growth, while Value Added Tax and Companies Income Tax (non-oil Tax Revenue) have significant relationship with Nigeria Economic Growth. The study recommends that government should minimize the wide spread corruption and leakages prevalent in tax administration in Nigeria, and transparently and judiciously account for tax revenue generated through the provision of more quality public goods and services, and need not to increase the rates of Value Added Tax and Companies Income Tax in the short run, but to closely monitor the operations of companies engaged in petroleum operations to minimize tax evasion, and as well as support the development of entrepreneurial activities in order to significantly increase Tax Revenue so as to sustain the significant relationship of VAT and CIT (non-oil tax) revenue with Nigeria Economic Growth.

scholarly journals Effect of Liquidity Management on Banks Profitability

2021 ◽  
Vol 65 (2) ◽  
pp. 220-237
Author(s):  
John Ajayi ◽  
◽  
Qudus Lawal ◽  
Keyword(s):  
Significant Relationship ◽  
Secondary Data ◽  
Annual Reports ◽  
P Value ◽  
Liquid Ratio ◽  
Return On Assets ◽  
Liquidity Management ◽  
Growth And Survival ◽  
Distributed Lag ◽  
Auto Regressive

Liquidity management and profitability are very important issues in the growth and survival of businesses including financial institutions and the ability to handle trade-off between the two is a source of concern for financial managers. Hence, this research examines the relationship between liquidity management and bank performance using secondary data from the published annual reports of five (5) sampled Deposit Money Banks in Nigeria for a period of ten years (2009-2018). The proxies for liquidity management include loan to deposit ratio, loan to assets ratio, liquid ratio, while return on assets was the proxy for profitability. Data was analyzed using Auto Regressive Distributed Lag (ARDL) and results from the study showed that there is a negative and significant relationship between loan to deposit ratio with p-value 0.0021 and return on assets (ROA), a positive and significant relationship between loan to asset ratio with p-value 0.0005 and return on assets (ROA) and a positive and insignificant relationship between liquid ratio with p-value 0.1808 and return on assets (ROA). The study concludes that, there is a significant and positive relationship between liquidity management and profitability of banks in Nigeria. It is recommended that banks should always endeavour to administer their credits effectively by adhering strictly to rules on granting of credit.

scholarly journals Tax Revenue and Nigeria Economic Growth

2020 ◽  
Vol 3 (1) ◽  
pp. 30
Author(s):  
Emmanuel Onoja Eneche ◽  
Ibrahim Ademu Stephen
Keyword(s):  
Economic Growth ◽  
Tax Evasion ◽  
Significant Relationship ◽  
Income Tax ◽  
Computer Software ◽  
Value Added ◽  
Tax Revenue ◽  
Value Added Tax ◽  
Goods And Services ◽  
Short Run

This study examines the relationship between Tax Revenue and Nigeria Economic Growth. In order to achieve this objective, data was gathered through secondary means. Tax Revenue is proxy by Petroleum Profit Tax, Value Added Tax and Companies Income Tax, while Economic Growth is proxy by Gross Domestic Product. Data collected were analyzed with the aid of the Stata computer software. The study revealed that Petroleum Profit Tax (oil tax revenue) has a positive but no significant relationship with Nigeria Economic Growth, while Value Added Tax and Companies Income Tax (non-oil Tax Revenue) have significant relationship with Nigeria Economic Growth. The study recommends that government should minimize the wide spread corruption and leakages prevalent in tax administration in Nigeria, and transparently and judiciously account for tax revenue generated through the provision of more quality public goods and services, and need not to increase the rates of Value Added Tax and Companies Income Tax in the short run, but to closely monitor the operations of companies engaged in petroleum operations to minimize tax evasion, and as well as support the development of entrepreneurial activities in order to significantly increase Tax Revenue so as to sustain the significant relationship of VAT and CIT (non-oil tax) revenue with Nigeria Economic Growth.

scholarly journals Tax evasion in Nepal: An Inquiry

Pravaha ◽  
2018 ◽  
Vol 24 (1) ◽  
pp. 83-95 ◽  
Author(s):  
Jit Bahadur K.C.
Keyword(s):  
Economic Growth ◽  
Regression Analysis ◽  
Correlation Analysis ◽  
Tax Evasion ◽  
Inverse Relationship ◽  
Secondary Data ◽  
Negative Influence ◽  
Tax Revenue ◽  
New Knowledge ◽  
Current Price

Purpose: This article analyses the degree of relationship between tax evasion, total tax revenue and economic growth in Nepal.Methodology: This empirical study adopts secondary data from various journals, books, reports, booklets, and the websites in order to obtain objective results between the research variables (i.e., tax evasion, total tax revenue and economic growth) applying both research tools of correlation and linear regression analysis.Findings: The study found an inverse relationship between the variables (i.e., tax evasion and total tax revenue (-0.678) and tax evasion and economic growth (-0.666)) under correlation analysis. Similarly, it found negative influence of the tax evasion on total tax revenue and economic growth under the regression analysis. The examination of the influence of tax evasion on the total tax revenue showed that, other elements of the taxes kept constant, an increase in tax evasion by 1 unit led to a decrease in value of tax revenue by 34.037. In the same way, study of the influence of the tax evasion on the economic growth (at current price) showed that, other things being constant, an increase in tax evasion by 1 unit led to a decrease in the economic growth by the value of 147.440. Thus, tax evasion has an inverse relationship with economic growth, and tax revenue.Originality: This paper provides an explicit new result on association and influence between and on the research variables (i.e., tax evasion between and on the total tax and economic growth) in Nepal for the duration of 9 years. Thus, this study furnishes the new knowledge in the literature of the research variables. Pravaha Vol. 24, No. 1, 2018, page: 83-95

Globalisation, Economic Growth and Income Inequality in Nigeria

2020 ◽  
Vol 14 (2) ◽  
pp. 202-212
Author(s):  
NWOSA Philip Ifeakachukwu
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Secondary Data ◽  
Vector Error Correction ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive ◽  
The Impact ◽  
Financial Globalisation

This article examines the link between globalisation, economic growth and income inequality in Nigeria using annual secondary data over the period 1981–2018. Specifically, it attempts to examine the following questions: (a) What is the direction of causation among globalisation, economic growth and inequality? (b) What is the impact of globalisation and economic growth on inequality? (iii) Do trade globalisation and financial globalisation have differential impacts on inequality in Nigeria? The article used both vector error correction modelling (VECM) and auto-regressive distributed lag (ARDL) techniques. The VECM results show a unidirectional causality from inequality and globalisation to economic growth in the long run, whereas a unidirectional causation was observed from inequality to economic growth in the short run. The ARDL estimate shows that globalisation and economic growth are significant determinants of inequality in Nigeria. Furthermore, it is observed that trade and financial globalisation influenced income inequality differently. In the light of these findings, the article recommends that the foreign direct investment should be channelled towards empowering the poor, and the dividends of economic growth should be evenly distributed to reduce the income inequality gap.

Fiscal Deficit And Economic Growth, Nigeria Experience

2015 ◽  
Vol 3 (11) ◽  
pp. 6-15
Author(s):  
Ogunsakin Sanya ◽  
Lawal N Abiola
Keyword(s):  
Economic Growth ◽  
Capital Accumulation ◽  
Capital Expenditure ◽  
Unit Root Test ◽  
Secondary Data ◽  
Annual Reports ◽  
Fiscal Deficit ◽  
Distributed Lag ◽  
Long Run ◽  
Integration Test

This study examines impact of fiscal deficit on the growth of Nigerian economy using co-integration and error correction. Secondary data were gathered from various sources such as; the Central Bank of Nigeria statistical bulletin, economic and financial review monthly and annual reports and statement of accounts for various years. The time series property of the data employed, are first to be investigated. This is then followed by testing for co-integrated variables. From the unit root test, the results clearly indicate that the variables are integrated of the same order at first difference. Also, from the multivariate co-integration test, within the Auto-Regressive Distributed Lag (ARDL) the results indicate that there are, at most, two co-integrating vectors. This implies that there exists a stable long-run relationship between economic growth and budgeting components. From the study, it was discovered that deficit budget is one of the indicators of macroeconomic instability and significantly discourage human capital accumulation. However, recommendations are made based on the findings among which are that government should set its priorities right, be more committed to budget implementation and to pay more attention to capital expenditure geared towards growth.

scholarly journals The Nexus of Foreign Direct Investment, Economic Growth and Environment in Pakistan

2016 ◽  
Vol 55 (2) ◽  
pp. 95-111
Author(s):  
Syed Sundus Raza ◽  
Anwar Hussain
Keyword(s):  
Economic Growth ◽  
Co2 Emissions ◽  
Carbon Dioxide Emissions ◽  
Secondary Data ◽  
Jel Classification ◽  
Distributed Lag ◽  
Short Run ◽  
Auto Regressive ◽  
The Impact ◽  
Sectoral Fdi

This paper estimate the impact of sectoral FDI on economic growth and carbon dioxide emissions in Pakistan. To this end, it uses time series secondary data from 1972 to 2011 and applies Auto Regressive Distributed Lag (ARDL) models. The results showed that FDI inflows in manufacturing, transport, storage and communication sectors and energy consumption have positive effect on the GDP growth of Pakistan. Besides, FDI inflow in manufacturing, transport, storage and communication sector and population density are responsible for the CO2 emissions in Pakistan. The results also validate Environmental Kuznet Curves in both long and short run. JEL Classification: E2, O4, Q5 Keywords: Sectoral FDI, CO2 emissions, Environmental Kuznet Curves, Gross Domestic Product Growth

scholarly journals Indirect Tax and Economic Growth in Nigeria: The Case of VAT

2019 ◽  
pp. 61-66
Author(s):  
OBAYORI, Joseph Bidemi ◽  
OMEKWE, Sunday Omiekuma Paul
Keyword(s):  
Economic Growth ◽  
Tax Evasion ◽  
Unit Root Test ◽  
Value Added ◽  
Secondary Data ◽  
Value Added Tax ◽  
Long Run ◽  
Integration Test ◽  
The Impact ◽  
Excise Duties

This paper empirically investigated the impact of value added tax (VAT) on economic growth in Nigeria from 1994–2018. This was done against the background that VAT as an indirect tax was introduced by the Federal Government of Nigeria in 1993 to replace sales tax with the sole aim of increasing the revenue base of government and make funds available for developmental purposes. The aim of the study is to examine the effect of value added tax on economic growth in Nigeria and determine the impact of other tax revenues particularly, custom and excise duties on economic growth in Nigeria. Thus, secondary data on GDP, VAT revenues, custom and excise duties were sourced from CBN statistical bulletin. Also, ARDL technique was used to analyze data. The variables were subjected to ADF unit root test prior the ARDL and found to be stationary. The ARDL co-integration test showed that there is a long run association amongst the variables. The ARDL short run result showed that the value of VAT has a positive relationship with economic growth in Nigeria. Also, custom and excise duties revenue positively impacted on economic growth in Nigeria. Hence, it was concluded that Value Added Tax (VAT) as an indirect tax system in Nigeria has direct relationship with economic growth in Nigeria since its inception in 1994. It has contributed to the total revenue of the nation as a result of reduction in tax evasion. Based on the findings, the paper recommended that government should put in place adequate measure to ensure that revenue generated from VAT is effectively utilized to develop and grow the economy in order to better the lives of the citizenry.

scholarly journals A Study Examining the Effect of Pistachio Export in Iran

2011 ◽  
Vol 2 (2) ◽  
pp. 73-80
Author(s):  
Safdari Mehdi
Keyword(s):  
Economic Growth ◽  
Agricultural Sector ◽  
Explanatory Power ◽  
Value Added ◽  
Total Production ◽  
Independent Variables ◽  
Distributed Lag ◽  
Dependent Variables ◽  
Auto Regressive ◽  
The Relationship

Pistachio is one of the most important agricultural sector products in Iran. This product is important because of creating exchange, employment, value added and other economic conditions. The purpose of this study is to determine the relationship between pistachio export and economic growth in Iran. The theoretical framework was designed based on this assumption that the total production in the economy is divided into two sections: production for inside and production for export. The data were collected from 1990 to 2003 and were analyzed using Auto Regressive Distributed Lag (ARDL) model. The result of the analyses showed that there was significant relationship between pistachio export and economic growth. Together the independent variables explained 89% of the variance in the dependent variables. The remaining 11% was due to unidentified variables. In relation to that, we can conclude that explanatory power is high for the equation. It showed that one percent change in pistachio export rate lead to 38% in economic growth. Therefore pistachio export is regarded as an important factor in Iran's economic growth.

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