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Tax Revenue, Capital Market Performance and Foreign Direct Investment in an Emerging Economy

Author

Listed:
  • Akpokerere Othuke Emmanuel

    (Department of Banking and Finance, Faculty of Administration and Management, Delta State University of Science and Technology, Ozoro, Delta State, Nigeria)

  • Osevwe-Okoroyibo Elizabeth Eloho

    (Department of Accounting, Faculty of Administration and Management, Delta State University of Science and Technology, Ozoro, Delta State, Nigeria)

  • Alexander Olawumi Dabor

    (Department of Accounting, Faculty of Arts, Management and Social Sciences, Edo State University, Uzairue, Edo State, Nigeria,)

  • Eyesan Leslie Dabor

    (Department of Accounting, Faculty of Management Sciences, University of Benin, Benin, Edo State, Nigeria.)

  • Meshack Aggreh

    (Nnamdi Azikiwe University, Akwa, Nigeria.)

Abstract

The study examines tax revenue, capital market performance and foreign direct investment (FDI) in Nigeria. The broad objective of this study is to find out the relationship between tax revenue, capital market performance and FDI in Nigeria. The study adopted a longitudinal research design and covers a period of 1994-2021. Secondary data were obtained from annual report and bulletins of the Central Bank of Nigeria. This study employed the ADF and Philips-Perron (PP) unit root test, panel Johansen cointegration test, VAR model, dynamic ordinary least square regression, full modified ordinary least regression and pairwise granger. The findings amongst others revealed that; value added tax has a bidirectional relationship with foreign direct investment in Nigeria; company income tax has no significant relationship with foreign direct investment in Nigeria; custom and exercise duty has a unidirectional relationship with foreign direct investment in Nigeria; stock market capitalization has no significant relationship with foreign direct investment in Nigeria. Based on the findings, the study recommended amongst others that policy makers should concentrate effort on long run policies that will stimulate capital market development in Nigeria, Also, a healthier and more robust friendly foreign investment policies should be created and maintained and the government should partners with foreign investors to enhance capital market development in Nigeria.

Suggested Citation

  • Akpokerere Othuke Emmanuel & Osevwe-Okoroyibo Elizabeth Eloho & Alexander Olawumi Dabor & Eyesan Leslie Dabor & Meshack Aggreh, 2024. "Tax Revenue, Capital Market Performance and Foreign Direct Investment in an Emerging Economy," International Journal of Economics and Financial Issues, Econjournals, vol. 14(4), pages 290-298, July.
    • Handle: RePEc:eco:journ1:2024-04-31
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    References listed on IDEAS

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    5. Yilmaz BAYAR & Omer Faruk OZTURK, 2018. "Impact of foreign direct investment inflows on tax revenues in OECD countries: A panel cointegration and causality analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(614), S), pages 31-40, Spring.
    6. Bruce Blonigen, 2005. "A Review of the Empirical Literature on FDI Determinants," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 33(4), pages 383-403, December.
    7. Akpokerere Othuke Emmanuel & Osevwe-Okoroyibo Elizabeth Eloho & Alexander Olawumi Dabor & Eyesan Leslie Dabor & Meshack Aggreh, 2024. "Tax Revenue, Capital Market Performance and Foreign Direct Investment in an Emerging Economy," International Journal of Economics and Financial Issues, Econjournals, vol. 14(4), pages 290-298, July.
    8. Peter J Buckley & Jeremy Clegg & Chengqi Wang, 2002. "The Impact of Inward FDI on the Performance of Chinese Manufacturing Firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(4), pages 637-655, December.
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    Cited by:

    1. Akpokerere Othuke Emmanuel & Osevwe-Okoroyibo Elizabeth Eloho & Alexander Olawumi Dabor & Eyesan Leslie Dabor & Meshack Aggreh, 2024. "Tax Revenue, Capital Market Performance and Foreign Direct Investment in an Emerging Economy," International Journal of Economics and Financial Issues, Econjournals, vol. 14(4), pages 290-298, July.

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    More about this item

    Keywords

    Tax Revenue; Capital Market Performance; Foreign Direct Investment;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G2 - Financial Economics - - Financial Institutions and Services
    • G3 - Financial Economics - - Corporate Finance and Governance

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