Tax revenue and private domestic investment: Evidence from Nigeria

This paper investigated the impact of tax revenue on private domestic investment in Nigeria from 1980 to 2018 using the modified ordinary least squares- Autoregressive distributed lag (ARDL). The paper used oil revenue, non-oil revenue, and Corporate Income Tax (CIT) as the independent variables while Private Domestic Investment (PDI) is the dependent variable. Oil revenue and non-oil revenue were used as a proxy for oil and non-oil tax. These data were obtained from secondary sources- central Bank of Nigeria, World Bank database and Federal Inland Revenue service statistical bulletin. The result showed that a long-run relationship exists between the aforementioned variables. Also, the paper revealed that oil and non-oil do not have a significant impact on PDI but CIT has a positive and significant impact on PDI. The paper recommends that proper measures/reforms should be put in place in order to reduce the impact of tax on private domestic investment in Nigeria.

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Policy, Institutions and Non-Oil Exports: Evidence from Nigeria

International Journal of Economics and Finance ◽

10.5539/ijef.v7n11p10 ◽

2015 ◽

Vol 7 (11) ◽

pp. 10

Author(s):

Martins Iyoboyi ◽

Abdelrasaq Na-Allah

Keyword(s):

Secondary Sources ◽

Distributed Lag ◽

Autoregressive Distributed Lag ◽

Long Run ◽

Equilibrium Relationship ◽

Oil Exports ◽

Short Run ◽

Oil Sector ◽

Using Data ◽

The Impact

<p>In this paper, the impact of policy and institutions on non-oil exports in Nigeria is investigated, using data from secondary sources for the period 1961-2012, and implemented through the autoregressive distributed lag framework. Non-oil exports were found to have a long-run equilibrium relationship with policy and institutional variables. Money supply and exchange rate were found to be positively associated with and statistically significant determinants of non-oil exports in the long and short run. Fiscal deficit, interest rate, ‘constraints on the executive’ and openness were found to be inversely related to non-oil exports in both the short and long run. While inflation was found to be negatively related to non-oil exports in the short run, it is the reverse in the long run. An enhanced political institutional framework is required, that is attuned to growth in the non-oil sector of the economy, as a mechanism for improving the country’s non-oil exports.</p>

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Economic Analysis of Capital Expenditure and Infrastructural Development in Nigeria

Journal of Infrastructure Development ◽

10.1177/0974930618809173 ◽

2018 ◽

Vol 10 (1-2) ◽

pp. 52-62 ◽

Cited By ~ 1

Author(s):

Chukwuemeka Valentine Okolo ◽

Richardson Kojo Edeme ◽

Chinanuife Emmanuel

Keyword(s):

Capital Expenditure ◽

External Debt ◽

The Past ◽

Infrastructural Development ◽

Distributed Lag ◽

Autoregressive Distributed Lag ◽

Oil Revenue ◽

Long Run ◽

The Impact ◽

Positive Effect

Infrastructural development has been the major concern of countries all over the world due to its significant impact in fostering growth. In Nigeria, it has been observed that the level of infrastructure posed serious threat to attaining sustained growth. This study therefore examines the impact of capital expenditure on infrastructural development in Nigeria, utilising time series from 1970 to 2017. The study adopted autoregressive distributed lag (ARDL) model due to the possibility of the past value of the dependent variable explaining its present value, and found that capital expenditure, construction expenditure and non-oil revenue have the potency of accentuating infrastructural development in the long-run but such is being hampered by external debt. The positive effect of recurrent expenditure on infrastructural development is a pointer that bulk of the expenditure in Nigeria over the years is recurrent in nature. These suggest the need to boost non-oil revenue, reduce recurrent and channel external debt into productive infrastructural development.

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The Impact of Industrialization, Trade Openness, Financial Development, and Energy Consumption on Economic Growth in Indonesia

Economies ◽

10.3390/economies9040174 ◽

2021 ◽

Vol 9 (4) ◽

pp. 174

Author(s):

Khalid Eltayeb Elfaki ◽

Rossanto Dwi Handoyo ◽

Kabiru Hannafi Ibrahim

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Least Squares ◽

Financial Development ◽

Correction Term ◽

Trade Openness ◽

Ordinary Least Squares ◽

Distributed Lag ◽

Long Run ◽

The Impact

This study aimed to scrutinize the impact of financial development, energy consumption, industrialization, and trade openness on economic growth in Indonesia over the period 1984–2018. To do so, the study employed the autoregressive distributed lag (ARDL) model to estimate the long-run and short-run nexus among the variables. Furthermore, fully modified ordinary least squares (FMOLS), dynamic least squares (DOLS), and canonical cointegrating regression (CCR) were used for a more robust examination of the empirical findings. The result of cointegration confirms the presence of cointegration among the variables. Findings from the ARDL indicate that industrialization, energy consumption, and financial development (measured by domestic credit) positively influence economic growth in the long run. However, financial development (measured by money supply) and trade openness demonstrate a negative effect on economic growth. The positive nexus among industrialization, financial development, energy consumption, and economic growth explains that these variables were stimulating growth in Indonesia. The error correction term indicates a 68% annual adjustment from any deviation in the previous period’s long-run equilibrium economic growth. These findings provide a strong testimony that industrialization and financial development are key to sustained long-run economic growth in Indonesia.

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SHORT-RUN AND LONG-RUN IMPACT OF INFLATION, UNEMPLOYMENT, AND ECONOMIC GROWTH TOWARDS POVERTY IN INDONESIA: ARDL APPROACH

JURNAL DINAMIKA EKONOMI PEMBANGUNAN ◽

10.14710/jdep.2.1.15-29 ◽

2019 ◽

Vol 2 (1) ◽

pp. 15

Author(s):

Ahmadi Murjani

Keyword(s):

Economic Growth ◽

Poverty Alleviation ◽

Macroeconomic Variables ◽

Distributed Lag ◽

Autoregressive Distributed Lag ◽

Long Run ◽

Ardl Approach ◽

Short Run ◽

The Government ◽

The Impact

Poverty alleviation has become a vigorous program in the world in recent decades. In line with the efforts applied by the government in various countries to reduce poverty, some evaluations have been practised. The impacts of macroeconomic variables such as inflation, unemployment, and economic growth have been commonly employed to be assessed for their impact on the poverty. Previous studies in Indonesia yielded mix results regarding the impact of such macroeconomic variables on the poverty. Different methods and time reference issue were the suspected causes. This paper aims to overcome such problem by utilising the Autoregressive Distributed Lag (ARDL) equipped with the latest time of observations. This paper finds in the long-run, inflation, unemployment, and economic growth significantly influence the poverty. In the short-run, only inflation and economic growth are noted affecting poverty significantly.

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Changes in Crude Oil Prices and the Flow of Government Revenue

South Asian Journal of Social Studies and Economics ◽

10.9734/sajsse/2019/v5i130139 ◽

2019 ◽

pp. 1-12

Author(s):

Chukwunweike Stella ◽

Achu Tonia Chinedu ◽

Awa Kalu Idika

Keyword(s):

Oil Prices ◽

Oil Price ◽

Government Revenue ◽

Distributed Lag ◽

Autoregressive Distributed Lag ◽

Oil Revenue ◽

Crude Oil Prices ◽

Regression Techniques ◽

The Government ◽

The Impact

This work is set out as an investigation into the impact of change in oil prices on government revenue broken into oil and nonoil component. Drawing data from the Central Bank Statistical Bulletin and covering the period 1981 to 2018. The Autoregressive Distributed Lag (ARDL) Model was used because of its advantages over other regression techniques. It was found that changes in oil price affected oil revenue within the studied period leaving no significant impact on nonoil revenue. The result obviously reflects the Nigerian economy and its mono-product characteristic. It is therefore recommended that a conscious policy effort should be made to diversify the economy in a manner that makes revenue to the government multifarious functions.

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Workers’ Remittances in Yemen: Macroeconomic Determinants and Impact on Economic Growth

Management & Economics Research Journal ◽

10.48100/merj.2021.157 ◽

2021 ◽

Author(s):

Essa A. Alhannom ◽

Ghaleb S. Mushabeb

Keyword(s):

Economic Growth ◽

Planning Process ◽

Host Countries ◽

Macroeconomic Conditions ◽

Distributed Lag ◽

Autoregressive Distributed Lag ◽

Long Run ◽

Inflation Rates ◽

Macroeconomic Determinants ◽

The Impact

This study aims to examine the determinants of workers’ remittances and their impact on economic growth in Yemen. Autoregressive Distributed Lag (ARDL) bounds test to co-integration and error correction model (ECM) were applied on data covering the period from 1990 to 2014. According to the model of remittances determinants, workers’ remittances in Yemen respond to the macroeconomic conditions of both the home and host countries. It is found that, in the long-run, migrant stock and income level at the host countries are positively and strongly influence remittances level, with a feeble impact of domestic inflation rates. The effect of the home country’s income seems to be positive but insignificant in explaining the behavior of remittances level. The model of economic growth suggests that, in the long-run, the impact of workers’ remittances appears to be positive and moderate with positive and stronger influences observed for financial development and official development assistance. Accordingly, it is recommended that a lesser weight should be given to remittances in the strategic planning process, taking into consideration the increasing potentials of the conditions in the neighboring host countries to be changed. In addition, using remittances as a means of economic growth can be enhanced by encouraging migrants to direct their savings towards productive investment activities, and via formal channels.

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Zakat and SDGs: Impact Zakat on Human Development in the Five States of Malaysia

International Journal of Zakat ◽

10.37706/ijaz.v2i1.15 ◽

2017 ◽

Vol 2 (1) ◽

pp. 61-69 ◽

Cited By ~ 2

Author(s):

Eko Suprayitno ◽

Mohamed Aslam ◽

Azhar Harun

Keyword(s):

Economic Growth ◽

Human Development ◽

Development Program ◽

Granger Causality Test ◽

Development Education ◽

Causality Test ◽

Distributed Lag ◽

Autoregressive Distributed Lag ◽

Long Run ◽

The Impact

Zakat is intended to stimulate economic development, education, social, human resources empowerment, religion health, and insurance programs. The seven programs above are implemented by the Malaysian government to improve economic growth. The aim of the study is to examine the impact zakat on human development program in Malaysia using the Autoregressive Distributed Lag (ARDL) bound testing approach. The analysis was carried out for the period from 1980–2009. The finding of the research reveals that zakat has a positive and significant influence on human development in five state in the short and long run. Zakat in Malaysia can be used as tool of fiscal policy that is decided in the states of Malaysia to stimulate human development and economic growth in the long run. Keyword: Zakat, Human Development, Granger causality test

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On the Evolutionary Interplay Between Remittances, Financial Development, and Economic Growth

Advances in Educational Marketing, Administration, and Leadership - Intergenerational Governance and Leadership in the Corporate World ◽

10.4018/978-1-5225-8003-4.ch004 ◽

2019 ◽

pp. 78-96

Author(s):

Ramzi Fahrani ◽

Azza Béjaoui

Keyword(s):

Economic Growth ◽

Financial Development ◽

Data Series ◽

Distributed Lag ◽

Autoregressive Distributed Lag ◽

Long Run ◽

Ardl Approach ◽

Stable Economy ◽

Relationship Of ◽

The Impact

In this chapter, the authors attempt to investigate the interaction between remittances and financial development and its impact on the economic growth over the period 1980-2016. In this respect, they apply the autoregressive distributed lag bound test (ARDL) approach on cross-country of data series from 1980 to 2016 to study the short- and long-run relationship of remittances and financial development with economic growth. The empirical results show that the direct effects of shipments on growth are significant. On the other hand, the impact of remittances on economic seems to be more significant by means of the financial development. It also shows that these shipments are more efficient in the case of a less developed informal sector, a politically stable economy, and a developed financial structure.

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Asymmetric Effect of Fiscal Deficit on Current Account Deficit: Evidence from India

Vision The Journal of Business Perspective ◽

10.1177/09722629211057221 ◽

2021 ◽

pp. 097226292110572

Author(s):

Vishal Sharma ◽

Masudul Hasan Adil ◽

Sana Fatima ◽

Ashok Mittal

Keyword(s):

Current Account ◽

Positive Impact ◽

Current Account Deficit ◽

Fiscal Deficit ◽

Asymmetric Effect ◽

Distributed Lag ◽

Autoregressive Distributed Lag ◽

Long Run ◽

Asymmetric Impact ◽

The Impact

This study has attempted to re-investigate the impact of fiscal deficit (FD) on current account deficit (CAD) (also known as twin deficit hypothesis) in India from 1970–1971 to 2018–2019 in the presence of private saving–investment gap (SI) and exchange rate (EXR). For the empirical investigation, the study has employed the nonlinear autoregressive distributed lag (NARDL) approach to cointegration. The NARDL results found the evidence of an asymmetric effect of FD, SI and EXR on CAD in the long run only. The obtained results support the traditional views of the Keynesian approach that FD has a positive impact on CAD, validates the existence of the ‘Twin Deficit Hypothesis’ in India. Further, results also depict that SI has a positive effect on CAD, whereas EXR has an adverse impact on CAD. From a policy standpoint, the asymmetric impact of FD on CAD provides strong reasons for conceiving policies that are adaptable to changing dynamics in internal as well as external sectors.

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