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Effect of Tax Revenues on Economic Growth in Benin The Role of Investment

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  • Gb tondji NONVIDE

    (University of Abomey Calavi Benin)

  • Cocou AMEGNAGLO

    (University of Abomey Calavi Benin)

Abstract

Benin s economy relies mainly on tax revenues This paper analyses the role of investment in the relation between tax revenue and economic growth in Benin It employed the Fully Modified Ordinary Least Squares technique to estimate the long run relationship among the variables of the model Results indicate positive effect of tax revenues on economic growth This effect is improved by the private investment while deteriorated by public investments which level remains low This result emphasizes the problem of public resources allocation in Benin Other determinants of economic growth include investment annual population growth rate and trade The study recommends that fiscal policy must promote private investments Tax revenues must be directed to more productive investments The results also favour trade open policy

Suggested Citation

  • Gb tondji NONVIDE & Cocou AMEGNAGLO, 2017. "Effect of Tax Revenues on Economic Growth in Benin The Role of Investment," Journal of Advanced Studies in Finance, ASERS Publishing, vol. 8(2), pages 139-145.
    • Handle: RePEc:srs:jasf00:v:8:y:2017:i:2:p:139-145
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    Cited by:

    1. Suna Korkmaz & Metehan Yilgor & Fadime Aksoy, 2019. "The Impact of Direct and Indirect Taxes on the Growth of the Turkish Economy," Public Sector Economics, Institute of Public Finance, vol. 43(3), pages 311-323.
    2. Omodero Cordelia Onyinyechi, 2022. "The Effects of Corporate and Individual Income Taxes on A gricultural Development in Nigeria," Folia Oeconomica Stetinensia, Sciendo, vol. 22(2), pages 168-179, December.

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