Tax Revenue and Economic Growth in Nigeria

John Obiora Anyaduba, Dickson Osamudiamen Efionayi and J. O. Anyaduba ()
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John Obiora Anyaduba: Department of Accounting, Postal: Faculty of Management Sciences,, University of Benin, Benin City, Nigeria, https://journal.citn.org/
Dickson Osamudiamen Efionayi: Department of Accounting, Postal: Faculty of Management Sciences,, University of Benin, Benin City, Nigeria, https://journal.citn.org/
J. O. Anyaduba: Professor of Accounting and Taxation, Postal: Department of Accounting, Faculty of Management Sciences, University of Benin, Benin City. Nigeria, https://journal.citn.org/

Journal of Taxation and Economic Development, 2019, vol. 18, issue 3, 150-169

Abstract: This study investigated the impact of tax revenue on economic growth using adjusted and unadjusted GDP. Data for the study were collected from the annual abstract of National Bureau of Statistics (NBS) and Central Bank of Nigeria Statistical Bulletin (CBN) from 1984 to 2016 a period of 33 years. Economic growth was proxy using unadjusted GDP (Nominal GDP), adjusted GDP (RGDP), and analysed using Error Correction Models (ECMs). The results from the study reveal that Petroleum Profits Tax (PPT) had a positive influence on economic growth when GDP was adjusted and unadjusted for inflation. Value Added Tax (VAT) had negative influence on economic growth when GDP was unadjusted for inflation and a positive influence on economic growth when GDP was adjusted for inflation. Companies Income Tax (CIT) had negative influence on economic growth when GDP was adjusted and unadjusted for inflation. Custom and Excise Duties (CED) had negative influence on economic growth when GDP was unadjusted for inflation and a positive influence on economic growth when GDP was unadjusted for inflation. The study concludes that for PPT and CIT researchers are free to use either GDP or RGDP as proxy for economic growth but for VAT and CED researchers should use RGDP as proxy for economic growth.

Keywords: Adjusted GDP; Economic Growth; Taxation; Unadjusted GDP (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:ris:jotaed:0036

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