IDEAS home Printed from https://ideas.repec.org/a/rnd/arjebs/v15y2023i1p15-26.html
   My bibliography  Save this article

Tax Revenue and Economic Growth: Empirical Evidence from Nigeria

Author

Listed:
  • Ifeoma Osamor
  • Godwin Omoregbee
  • Fadekemi Ajasa-Adeoye
  • Josephine Olumuyiwa-Loko

Abstract

Organizations reduced their tax revenue through tax evasion and avoidance, thereby affecting the economic growth of the country. In an attempt to further stress this assertion, this study aims to empirically examine the effects of tax revenue on economic growth in Nigeria. Tax revenue was a proxy with PPT, CIT, VAT and CTD, while economic growth was proxy with GDP. Ex post facto research design was employed, while time series quarterly data were collected from the statistical bulletins of CBN and FIRS for 10 years (2011-2020). Data collated were analyzed using descriptive analysis, unit root test, bounds cointegration test and ARDL. The findings revealed that PPT, CIT, VAT and CTD had positive insignificant effects on economic growth. The study concluded that tax revenue had insignificant effects on the economic growth of Nigeria and therefore, recommended that proper tax audit should constantly be carried out to reduce tax evasion and avoidance.

Suggested Citation

  • Ifeoma Osamor & Godwin Omoregbee & Fadekemi Ajasa-Adeoye & Josephine Olumuyiwa-Loko, 2023. "Tax Revenue and Economic Growth: Empirical Evidence from Nigeria," Journal of Economics and Behavioral Studies, AMH International, vol. 15(1), pages 15-26.
    • Handle: RePEc:rnd:arjebs:v:15:y:2023:i:1:p:15-26
    DOI: 10.22610/jebs.v15i1(J).3355
    as

    Download full text from publisher

    File URL: https://ojs.amhinternational.com/index.php/jebs/article/view/3355/2132
    Download Restriction: no
    File URL: https://ojs.amhinternational.com/index.php/jebs/article/view/3355
    Download Restriction: no
    File URL: https://libkey.io/10.22610/jebs.v15i1(J).3355?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Edewusi, Damilola Gabriel & Ajayi, Ibidolapo Ezekiel, 2019. "The Nexus between Tax Revenue and Economic Growth in Nigeria," International Journal of Applied Economics, Finance and Accounting, Online Academic Press, vol. 4(2), pages 45-55.
    2. Odusola, Ayodele, 2006. "Tax Policy Reforms in Nigeria," UNDP Africa Economists Working Papers 307339, United Nations Development Programme (UNDP).
    3. Edewusi, Damilola Gabriel & Ajayi, Ibidolapo Ezekiel, 2019. "The Nexus between Tax Revenue and Economic Growth in Nigeria," International Journal of Applied Economics, Finance and Accounting, Online Academic Press, vol. 4(2), pages 45-55.
    4. Ayeni Olasubomi Adefolake & Cordelia Onyinyechi Omodero, 2022. "Tax Revenue And Economic Growth In Nigeria," Cogent Business & Management, Taylor & Francis Journals, vol. 9(1), pages 2115282-211, December.
    5. ONAKOYA, Adegbemi Babatunde & AFINTINNI, Oluwatobi Ibukun, 2016. "Taxation and Economic Growth in Nigeria," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 4(4), pages 199-210, December.
    6. ONAKOYA Adegbemi Babatunde & AFINTINNI Oluwatobi Ibukun, 2016. "Taxation and Economic Growth in Nigeria," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 4(4), pages 199-210.
    7. Uket E. Ewa & Wasiu A. Adesola & Etim N. Essien, 2020. "Impact of Tax Revenue on Economic Development in Nigeria," International Business Research, Canadian Center of Science and Education, vol. 13(6), pages 1-1, June.
    8. Ayeni, Oluwasegun David & Afolabi, Olarewaju Joseph, 2020. "Tax Revenue, Infrastructural Development and Economic Growth In Nigeria," MPRA Paper 99464, University Library of Munich, Germany, revised 2020.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arjeta Shaqiri Latifi, 2022. "The impact of economy on the fight against trafficking in human beings in Kosovo," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 8, January -.
    2. Emmanuel Onoja Eneche & Ibrahim Ademu Stephen, 2021. "Tax Revenue and Nigeria Economic Growth," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 7, July -Dec.
    3. Edewusi, Damilola Gabriel & Ajayi, Ibidolapo Ezekiel, 2019. "The Nexus between Tax Revenue and Economic Growth in Nigeria," International Journal of Applied Economics, Finance and Accounting, Online Academic Press, vol. 4(2), pages 45-55.
    4. Sarah Nizamani, 2020. "Higher Taxes Reduce Economic Growth: Overwhelming International Evidence," PIDE Knowledge Brief 2020:14, Pakistan Institute of Development Economics.
    5. Olise, Charles Nnamdi & Emeh, Ikechukwu Eke, 2020. "Interrogating the Impact of Voluntary Asset and Income Declaration Scheme (VAIDS) on Tax Administration in Nigeria," Journal of Public Administration and Governance, Macrothink Institute, vol. 10(3), pages 3852-3852, December.
    6. UNDP Regional Bureau for Africa & Ayodele Odusola, "undated". "Fiscal Policy, Redistribution and Inequality in Africa," UNDP Africa Policy Notes 2017-08, United Nations Development Programme, Regional Bureau for Africa.
    7. Narayan Sethi & Saileja Mohanty & Sanhita Sucharita & Nanthakumar Loganathan, 2020. "Tax Reform And Economic Growth Nexus In India: Evidence From The Cointegration And Rolling-Window Causality," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 65(06), pages 1699-1725, December.
    8. Etim Osim Etim & Nsima Johnson Umoffon & David Johnny Ekanem, 2020. "Does Taxation Drive Economic Development in Nigeria?," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 7(7), pages 129-137, July.
    9. Odusola, Ayodele, 2017. "Fiscal Policy, Redistribution and Inequality in Africa," UNDP Africa Reports 267032, United Nations Development Programme (UNDP).
    10. Mamon Adam Maarof & Dildar Haydar Ahmed & Ahmed Samour, 2023. "Fiscal Policy, Oil Price, Foreign Direct Investment, and Renewable Energy—A Path to Sustainable Development in South Africa," Sustainability, MDPI, vol. 15(12), pages 1-16, June.
    11. Olufemi Muibi SAIBU, 2015. "Optimal tax rate and economic growth. Evidence from Nigeria and South Africa," EuroEconomica, Danubius University of Galati, issue 1(34), pages 41-50, May.
    12. ADEYEYE, Gbadegesin, 2019. "http://anale.spiruharet.ro/index.php/economics/article/view/1914/pdf," Annals of Spiru Haret University, Economic Series, Universitatea Spiru Haret, vol. 19(1), pages 31-63.
    13. repec:rac:ecchap:2017-08 is not listed on IDEAS
    14. Innocent Nwaorgu & Wilson Herbert & Francis Onyilo, 2016. "A Longitudinal Assessment of Tax Reforms and National Income in Nigeria: 1971-2014," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(8), pages 1-43, August.
    15. Julia Ngozi Chukwuma, 2023. "Implementing Health Policy in Nigeria: The Basic Health Care Provision Fund as a Catalyst for Achieving Universal Health Coverage?," Development and Change, International Institute of Social Studies, vol. 54(6), pages 1480-1503, November.
    16. Adejare Adegbite Tajudeen, 2021. "Taxation and Transportation: Granger Causality Approach in Nigeria," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 31(3), pages 1-20, September.
    17. Kadijat Adeleke, Oluwayemisi & Abamba Osakede, Uche & Monisola Ajeigbe, Omowunmi, 2021. "Trade Liberalization And Infrastructure Development: Evidence From The Economic Community Of West African States," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 8(3), pages 1-20, June.
    18. Adegbite, Tajudeen Adejare, 2017. "Personal Income Tax and Government Revenue: Evidence from Oyo State," International Journal of Social and Administrative Sciences, Asian Economic and Social Society, vol. 2(2), pages 45-51, December.
    19. Folashade O. Akinyemi & Oluwabunmi O. Adejumo, 2018. "Government policies and entrepreneurship phases in emerging economies: Nigeria and South Africa," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 8(1), pages 1-18, December.
    20. Musa Dauda & Philip O. Alege & Olabanji O. Ewetan & Franklin F. Asemota, 2023. "Oil Revenue and Sustainable Economic Growth in Nigeria: Empirical Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 150-155, July.
    21. Ikechukwu D Nwaka & Kalu E Uma & Gulcay Tuna, 2015. "Trade openness and unemployment: Empirical evidence for Nigeria," The Economic and Labour Relations Review, , vol. 26(1), pages 117-136, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rnd:arjebs:v:15:y:2023:i:1:p:15-26. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Tayyab (email available below). General contact details of provider: https://ojs.amhinternational.com/index.php/jebs .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.