IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v4y2020i7p298-306.html
   My bibliography  Save this article

Does Taxation Propel Economic Growth In Nigeria?

Author

Listed:
  • Etim Osim Etim

    (Department of Accounting, Faculty of Business Administration, University of Uyo, Uyo-Nigeria)

  • Nsima Johnson Umoffong

    (Department of Accounting, Faculty of Business Administration, University of Uyo, Uyo-Nigeria)

  • Ihenyen Joel Confidence

    (Department of Accounting, Faculty of Management Science, Niger Delta University, Yenegoa, Bayelsa State, Nigeria)

Abstract

The study examined the relationship between taxation and economic growth proxy by Per Capita Income (PCI) in Nigeria from 1985 to 2018 data were collected from Central Bank of Nigeria (CBN) and Federal Inland Revenue Service (FIRS) for various years on Companies Income Tax (CIT), Personal Income Tax (PIT), Value Added Tax (VAT), Petroleum Profit Tax (PPT) and Per Capita Income (PCI) from Socio-Economic Statistics Report by National Bureau of Statistics (NBS). The data were analysed using multiple regression technique. Findings reveal inverse and significant relationship between company income tax and per capita income, while, Personal Income Tax, Value Added Tax Petroleum profit tax shows positive relationship. Thus, the contention as to whether taxation propel economic growth in Nigeria cannot be rightly answered with a ‘Yes’ or ‘No’ response since the results from our study were mix. It was recommended that policy makers should focus on tax incentives that would boost investment in the manufacturing sector.

Suggested Citation

  • Etim Osim Etim & Nsima Johnson Umoffong & Ihenyen Joel Confidence, 2020. "Does Taxation Propel Economic Growth In Nigeria?," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 4(7), pages 298-306, July.
    • Handle: RePEc:bcp:journl:v:4:y:2020:i:7:p:298-306
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-4-issue-7/298-306.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/virtual-library/papers/does-taxation-propel-economic-growth-in-nigeria/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Barry W. Poulson & Jules Gordon Kaplan, 2008. "State Income Taxes and Economic Growth," Cato Journal, Cato Journal, Cato Institute, vol. 28(1), pages 53-71, Winter.
    2. Alexander Klemm & Stefan Parys, 2012. "Empirical evidence on the effects of tax incentives," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(3), pages 393-423, June.
    3. Browning, Edgar K, 1976. "The Marginal Cost of Public Funds," Journal of Political Economy, University of Chicago Press, vol. 84(2), pages 283-298, April.
    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. Rawaa Laajimi, 2024. "Spatial tax regimes and location choices of manufacturing firms: Survey evidence in southern Tunisia," Review of Development Economics, Wiley Blackwell, vol. 28(3), pages 803-826, August.
    2. Ceyhun Elgin & Orhan Torul & Tugce Turk, 2022. "Marginal Cost of Public Funds under the Presence of Informality," Hacienda Pública Española / Review of Public Economics, IEF, vol. 241(2), pages 79-103, June.
    3. Zachariah, Oswald E. R. & Fox, Glenn & Brinkman, George L., 1988. "The Returns to Broiler Research in Canada: 1968 to 1984," Department of Agricultural Economics and Business 258611, University of Guelph.
    4. Abdullah Alhassan & Mary E. Burfisher & Mr. Julian T Chow & Ding Ding & Fabio Di Vittorio & Dmitriy Kovtun & Arnold McIntyre & Ms. Inci Ötker & Marika Santoro & Lulu Shui & Karim Youssef, 2020. "Is the Whole Greater than the Sum of its Parts? Strengthening Caribbean Regional Integration," IMF Working Papers 2020/008, International Monetary Fund.
    5. Ronald B. Davies & Johannes Voget, 2008. "Tax competition in an expanding European Union," Working Papers 200904, School of Economics, University College Dublin.
    6. Bjørnskov, Christian, 2015. "Does economic freedom really kill? On the association between ‘Neoliberal’ policies and homicide rates," European Journal of Political Economy, Elsevier, vol. 37(C), pages 207-219.
    7. Bauer, Christian & Davies, Ronald B. & Haufler, Andreas, 2014. "Economic integration and the optimal corporate tax structure with heterogeneous firms," Journal of Public Economics, Elsevier, vol. 110(C), pages 42-56.
    8. Ernesto Crivelli & Ruud De Mooij & Michael Keen, 2016. "Base Erosion, Profit Shifting and Developing Countries," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 72(3), pages 268-301, September.
    9. Sawadogo, Fayçal, 2021. "Demand price elasticity of mobile voice communication: A comparative firm level data analysis," Information Economics and Policy, Elsevier, vol. 57(C).
    10. Jan Hanousek & Filip Palda, 2009. "Is there a displacement deadweight loss from tax evasion? Estimates using firm surveys from the Czech Republic," Economic Change and Restructuring, Springer, vol. 42(3), pages 139-158, August.
    11. Langenmayr, Dominika & Haufler, Andreas & Bauer, Christian J., 2015. "Should tax policy favor high- or low-productivity firms?," European Economic Review, Elsevier, vol. 73(C), pages 18-34.
    12. Ronald B. Davies & Michael J. Lamla & Marc Schiffbauer, 2016. "Learning or Leaning: Persistent and Transitory Spillovers from FDI," KOF Working papers 16-399, KOF Swiss Economic Institute, ETH Zurich.
    13. Geir H. M. Bjertnæs, 2020. "The marginal (opportunity) cost of public funds," Discussion Papers 925, Statistics Norway, Research Department.
    14. Kozo Kiyota, 2023. "Spatially uneven pace of deindustrialisation within a country," The World Economy, Wiley Blackwell, vol. 46(7), pages 2187-2230, July.
    15. Davies, Ronald B. & Vadlamannati, Krishna Chaitanya, 2013. "A race to the bottom in labor standards? An empirical investigation," Journal of Development Economics, Elsevier, vol. 103(C), pages 1-14.
    16. Robin Boadway, 2006. "Principles of Cost-Benefit Analysis," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 2(1), pages 1-44, January.
    17. Richard Funderburg & Timothy J. Bartik & Alan H. Peters & Peter S. Fisher, 2013. "The Impact Of Marginal Business Taxes On State Manufacturing," Journal of Regional Science, Wiley Blackwell, vol. 53(4), pages 557-582, October.
    18. David Nguyen-Thanh & Christoph Strupat, 2012. "Is the Burden Too Small? – Effective Tax Rates in Ghana," Ruhr Economic Papers 0389, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    19. André Decoster & Serio Perelman & Dieter Vandelannoote & Toon Vanheukelom & Gerlinde Verbist, 2015. "A birdÂ’’s eye view on 20 years of tax-benefit reforms in Belgium," Working Papers 1502, Herman Deleeck Centre for Social Policy, University of Antwerp.
    20. repec:zbw:rwirep:0389 is not listed on IDEAS
    21. Randall G. Holcombe & Donald J. Lacombe, 2004. "The Effect of State Income Taxation on Per Capita Income Growth," Public Finance Review, , vol. 32(3), pages 292-312, May.

    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:bcp:journl:v:4:y:2020:i:7:p:298-306. 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: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    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.