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

Akpokerere Othuke Emmanuel, Osevwe-Okoroyibo Elizabeth Eloho, Alexander Olawumi Dabor, Eyesan Leslie Dabor and Meshack Aggreh
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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.

International Journal of Economics and Financial Issues, 2024, vol. 14, issue 4, 290-298

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.

Keywords: Tax Revenue; Capital Market Performance; Foreign Direct Investment (search for similar items in EconPapers)
JEL-codes: G1 G2 G3 (search for similar items in EconPapers)
Date: 2024
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