Tax revenue and private domestic investment: Evidence from Nigeria

Richard Umeokwobi and Emeka Nkoro
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Richard Umeokwobi: Department of Economics, University of Port Harcourt, Nigeria
Emeka Nkoro: Department of Economics, University of Port Harcourt, Nigeria

International Journal of Business Ecosystem & Strategy (2687-2293), 2019, vol. 1, issue 4, 19-26

Abstract: This paper investigated the impact of tax revenue on private domestic investment in Nigeria from 1980 to 2018 using the modified ordinary least squares- Autoregressive distributed lag (ARDL). The paper used oil revenue, non-oil revenue, and Corporate Income Tax (CIT) as the independent variables while Private Domestic Investment (PDI) is the dependent variable. Oil revenue and non-oil revenue were used as a proxy for oil and non-oil tax. These data were obtained from secondary sources- central Bank of Nigeria, World Bank database and Federal Inland Revenue service statistical bulletin. The result showed that a long-run relationship exists between the aforementioned variables. Also, the paper revealed that oil and non-oil do not have a significant impact on PDI but CIT has a positive and significant impact on PDI. The paper recommends that proper measures/reforms should be put in place in order to reduce the impact of tax on private domestic investment in Nigeria.

Keywords: Private Domestic Investment; Tax Revenue; Nigeria (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (1)

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