Does Financial System Influence Tax Revenue? The Case of Nigeria

Folorunsho Ajide and Olasupo I. Bankefa

African Journal of Economic Review, 2017, vol. 05, issue 3

Abstract: We examined the influence of financial system activities on tax revenue collection in Nigeria for the period of 1981-2014. After given consideration for the period of banking crisis with the employment of ARDL/ Bound test, causality test, variance decomposition and impulse response techniques, our analysis showed that financial system activities influence tax revenue collection in Nigeria. We showed that financial system variables such as stock market development, banking development, banking crisis and financial inclusion variables play a pivotal role in the tax revenue collection. The impulse response, causality test and variance decomposition results corroborate our regression results. Therefore, we conclude that financial system should be used efficiently by government to improve the level of revenue collection and hence, economic growth.

Keywords: Agricultural Finance; Financial Economics; Public Economics (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://ageconsearch.umn.edu/record/302982/files/1 ... 13-1-10-20171107.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:afjecr:302982

DOI: 10.22004/ag.econ.302982

Access Statistics for this article

More articles in African Journal of Economic Review from African Journal of Economic Review
Bibliographic data for series maintained by AgEcon Search ().