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The Role Of Tax Revenue And Foreign Direct Investment In Promoting Economic Progress In Nigeria

Author

Listed:
  • JOSEPH, Fineboy Ikechi

    (Clifford University)

  • OMODERO, Cordelia Onyinyechi

    (Clifford University)

  • OMEONU, Obioma Manasseh

    (Clifford University)

Abstract

The study examined the impact of tax revenue on economic growth of Nigeria proxied as gross domestic product (GDP) from 2000-2017. The study employed Exploratory and ex-post facto designs and secondary data sourced from Federal Inland Revenue Services (FIRS), UNCTAD, FDI/MNE database, World Bank Report, United Nations Development Programme (UNDP) reports, CBN statistical bulletin. Ordinary Least Squares (OLS) regression technique was adopted to test the hypotheses of the study. The result reveals that tax revenue has significant impact on GDP in Nigeria with R-squared showing that about 87% variations in GDP can be attributed to tax revenue, while the remaining 23% variations in GDP are caused by other factors not included in this model. This is further emphasized by the T-statistic p-value of 0.001 which shows that the regression result is statistically significant because it is less than 5%, level of significance adopted for this study. The result from regression analysis also revealed that there is positive relationship between foreign direct investment and Gross Domestic Product, with a p-value of +0.000, +0.001

Suggested Citation

  • JOSEPH, Fineboy Ikechi & OMODERO, Cordelia Onyinyechi & OMEONU, Obioma Manasseh, 2019. "The Role Of Tax Revenue And Foreign Direct Investment In Promoting Economic Progress In Nigeria," Annals of Spiru Haret University, Economic Series, Universitatea Spiru Haret, vol. 19(3), pages 33-54.
    • Handle: RePEc:ris:sphecs:0306
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    References listed on IDEAS

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    1. BALESTRA, Pietro, 1970. "On the efficiency of ordinary least-squares in regression models," LIDAM Reprints CORE 71, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. Apata, Temidayo Gabriel & Folayan, A. & Apata, O.M. & Akinlua, J., 2011. "The Economic Role of Nigeria’s Subsistence Agriculture in the Transition Process: Implications for Rural Development," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108942, Agricultural Economics Society.
    3. OMODERO, Cordelia Onyinyechi, 2019. "A Relative Assessment Of The Contributions Of Agriculture, Oil And Non-Oil Tax Revenues To Nigeria’S Economic Expansion," Annals of Spiru Haret University, Economic Series, Universitatea Spiru Haret, vol. 19(2), pages 139-152.
    4. Kusi, N.K., 1998. "Tax Reform and Revenue Productivity in Ghana," Papers 74, African Economic Research Consortium.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    tax revenue; economic growth and GDP; foreign direct investment;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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    Access and download statistics

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