Vol 1 No 2 (2019)
Articles

Implications of Tax Revenue on Economy Growth in Nigeria

Samuel Olusegun James
Department of Banking and Finance, Faculty of Management Science, Kogi State, University, P.M.B 1008, Anyigba,Kogi State, Nigeria
Adewole Joseph Adeyinka
Department of Banking and Finance, Faculty of Management and Social Sciences, Adekunle Ajasin University, P.M.B 001, Akungba Akoko, Ondo State, Nigeria
Idih Ogwu Emmanuel
Department of Banking and Finance, Faculty of Management Science, Kogi State, University, P.M.B 1008, Anyigba,Kogi State, Nigeria
Published April 9, 2019
Keywords
  • Tax Revenue, Economy Growth, Nigeria.
How to Cite
James, S. O., Adeyinka, A. J., & Emmanuel, I. O. (2019). Implications of Tax Revenue on Economy Growth in Nigeria. American International Journal of Economics and Finance Research, 1(2), 1-16. Retrieved from http://www.acseusa.org/journal/index.php/aijefr/article/view/66

Abstract

The paper examined the implications of tax revenue on economy growth in Nigeria. The specific objective of this study is to examine the relationship between tax revenue and gross domestic product in Nigeria. Simple Regression was used to achieve the objective of this study. Secondary data will be sourced from International Monetary Fund’s Government Finance Statistics. It was revealed that there was a weak correlation between dependent and independent variable. It was also discovered that there was no significant relationship between tax revenue and gross domestic product in Nigeria.  The study therefore recommends that Government should formulate policies that will minimize the volume of tax leakages in order to increase total tax revenue that will contribute positively to economic growth in Nigeria. The study also recommends that Government should always make sure that tax revenue is spent on social amenities and welfares of the Nigerian citizens.

Downloads

Download data is not yet available.

References

  1. Adam, A., (2007), Tax Policies in a Globalized World: Is It Politics After All? public choice- springer.
  2. Adereti, S. A., Adesina, J. A. & Sanni, M. R. (2011), Value Added Tax and Economic Growth of Nigeria. European Journal of Humanities and Social Sciences, 10 (1): 455- 471.
  3. Akwe, J. A., (2014), Impact of Non-oil tax revenue on economic growth: The Nigerian Perspective. International Journal of Finance and Accounting, 3 (5): 303- 309.
  4. Appah, E. (2010),The Problems of Tax Planning and Administration in Nigeria: The Federal and State Governments Experience. International Journal of laboratory organ. pscyhol., 4 (1-2): 1- 14.
  5. Angahar, P. A., & Alfred, S. I., (2012), Personal Income Tax Administration in Nigeria. Global Business and Economic Research Journal, 1 (1): 1- 11
  6. Anyanwu, J. C. (1993), Monetary Economics: Theory, Policy and Institutions. Hybrid Publishers, Onitsha.
  7. Anyanwu, J. C., (1997), The Structure of the Nigerian Economy.Joanee Educational Publishers.
  8. Ariwodola, J. A., (2000), Personal Taxation in Nigeria. 4th edition Lagos: JAA Nigeria Ltd.
  9. Ariyo, A., (1997), Productivity of the Nigerian Tax System; 1970- 1990. opendocs.ids.ac.uk
  10. Arnold, J. M., (2011), Tax Policy for Economic Recovery and Growth. The Economic Journal, Vol. 121, Pg F59- F80.
  11. Bhartia, H. L. (2009), Public Finance. 14th Edn, Vikas Publishing House PVT ltd, New Delhi.
  12. Canavire- Bacarreza, G. Et al, (2013) Taxation and Economic Growth in Latin America. publication.iadb.org
  13. Dandago, K. I. & Alabede, J. O. (2001), Taxation and Tax Administration in Nigeria. Triumph Publishing Company Limited.
  14. Diamond, P. A., & Mirrlees, J. A., (1971), Optimal Taxation and Public Production II: Tax Rules.The American Economic Review.Vol. 61, No. 3, Part 1, PP 261- 278.
  15. Ebeke, C., & Ehrhart, J., (2011), Tax Revenue Instability in Sub- Saharan Africa: Consequences and Remedies. Journal of African Economies. academic.oup.com
  16. Emmanuel, U. C., Asogwa, F. O. &Nkolika, O. M. (2013), " Value Added Tax and Investment Growth in Nigeria: Time Series Analysis. Journal of Economics and Sustainable Development.
  17. Engen, E. M., & Skinner, J., (1996), Taxation and Economic Growth. -nber.org
  18. Gendron, P. P., (2005) Value Added Tax Treatment of Public Sector Bodies and Non- Profit Organizations: A developing Country Perspective. -ideas.repec.org
  19. Jhingan, M. L. (2004), Money, Banking, International Trade and Public Finance. India: Vrinda Publications, New Delhi.
  20. Kotler, P. (1975), The Nature and Scope of Taxation. IOSR Journal of Economics.
  21. Leach, G., (2003) The Negative Impact of Taxation on Economic Growth. London Reform, Institute of Directors.
  22. Lekan, S. & Sunday, O., (2006) Taxation, Principles and Practice in Nigeria. Ibadan: Silicon Publishing Company.
  23. Miki, B., (2011), The Effect of the VAT Rate Change on Aggregate Consumption and Economic Growth. CJEB working paper 22.
  24. Musgrave, R. and Musgrave, P. (1980) Public Finance in Theory and Practice, 5th edition. London: McGraw Hills Publishers.
  25. Myles, G. D., (2000) Taxation and Economic Growth, Fiscal studies. Wiley Online Library
  26. Naiyeju, J. K., (1996), Value Added Tax: The Facts of a Positive Tax in Nigeria, Lagos: KUPAG Public Affairs.
  27. Narayan, P. (2003) The Macroeconomic Impact of the IMF Recommended VAT Policy for the Fiji Economic: Evidence from a GCE model.In review of Urban & Region Development Studies (Vol. 15, pp. 226- 237). Tokyo: Blackwell Publishing Ltd.
  28. Ngerebo, T. A., &Masa, A., (2012) Appraisal of Tax System in Nigeria: A Case Study of Value Added Tax. Research Journal in Organization, -researchgate.net
  29. Nightingale, K. (2000) Taxation, Theory and Practice, 3rd edition.
  30. Nzotta, S. M. (2007) Tax Evasion Problems in Nigeria: A Critique Nigeria Account. 12 (1): 40- 43.
  31. Oboh, C. S., Yeye, O. & Isa, E. F., (2012) An Empirical Investigation of Multiple Tax Practices and Tax Payers' Compliance in Nigeria.
  32. Ogbonna, G. N., & Ebimobowei, A., (2012), Impact of Tax Reforms and Economic Growth of Nigeria: A Time Series Analysis. Current Research Journal of Social.
  33. Ogundele, A. E., (1991), "Elements of Taxation" 1st Edition: Libri Service, Lagos
  34. Okafor, R. G., (2012) Tax Revenue Generation and Nigerian Economic Development. European Journal of Business and Management, 4 (19): 49- 57.
  35. Okpe, I. I., (2000) The Impact of Tax Revenue on Economic Growth: Evidence from Nigeria. IOSR Journal of Economics, researchgate.net
  36. Ola, C. S. (2001), Income Tax Law and Practice in Nigeria, 5th edition. Ibadan: Dalag Prints and Part.
  37. Ola, C. S. (2004), Income Tax Law and Practice in Nigeria. Ibadan: Heinemann Educational Publishing Company.
  38. Omotoso, M. O., (2001) Principle of Taxation. Ibadan: First Shepherd Investment.
  39. Onaolapo, A. A., Aworemi, R. J., & Ajala, O. A., (2013) Assessment of Value Added Tax and its Effects on Revenue Generation in Nigeria. International Journal of Business and Social science.Vol. 4, No 1.
  40. Onoh, J. O., (2013) Corporate Taxation and Foreign Direct Investment in Nigeria. As Saidu- European Journal of Accounting, Auditing and Finance, eajournals.org
  41. Reinhart, C. M., & Tokatlidis, I., (2001), Before and After Financial Liberalization. www.puaf.umd.edu/faculty/papers/Reinhardt/FINLIB1
  42. Toder, E. & Rosenberg, J., (2010) Effects of Imposing a Value Added Tax to replace Payroll Taxes or Corporate Taxes. Tax Policy Publication - taxpolicycenter.org
  43. Tosun, M. S., & Abizadeh, S., (2005) Economic Growth and Tax Components: An Analysis of Tax Changes in OECD. -Applied Economics.
  44. Unegbu, A. O., & Irefin, D., (2011), Impact of VAT on Economic Development of Emerging Nations.Journal of Economics and International. academicjournals.org