IDEAS home Printed from https://ideas.repec.org/a/vrn/journl/y2020i2p137-152.html
   My bibliography  Save this article

Value Added Tax and Economic Growth in Nigeria (1994 – 2017)

Author

Listed:
  • Rasaki O. KAREEM

    (Department of Economics and Actuarial Sciences, College of Arts, Social and Management Sciences, Crescent University, Abeokuta, Ogun State, Nigeria)

  • Rukayat A. ARIJE

    (Department of Economics and Actuarial Sciences, College of Arts, Social and Management Sciences, Crescent University, Abeokuta, Ogun State, Nigeria)

  • Yusuf H. Avovome

    (Department of Economics, Federal College of Education, Osiele, Abeokuta, Ogun State, Nigeria)

Abstract

The study investigates Value Added Tax (VAT) and Economic Growth in Nigeria. The objectives of the study are to examine the impact of value added tax and economic growth and to determine the causal relationship between value added tax and economic growth in Nigeria. Secondary data sourced from Central Bank of Nigeria Statistical Bulletin was used for the study. The data properties were tested for unit root using Augmented Dickey-Fuller, Bound test co-integration was used to test for the long run relationship between the variables. The result revealed that value-added tax positively and significantly impacted on economic growth of Nigeria both in the long-run and short-run. The causality test also indicated that there was a causal relationship between Value Added Tax and economic growth in Nigeria during the period under study. The study therefore recommended that government should increase the VAT rate and eliminate every VAT revenue leakage since it was found to have positive effect on economic growth in Nigeria.

Suggested Citation

  • Rasaki O. KAREEM & Rukayat A. ARIJE & Yusuf H. Avovome, 2020. "Value Added Tax and Economic Growth in Nigeria (1994 – 2017)," Business & Management Compass, University of Economics Varna, issue 2, pages 137-152.
    • Handle: RePEc:vrn:journl:y:2020:i:2:p:137-152
    as

    Download full text from publisher

    File URL: http://journal.ue-varna.bg/uploads/20200817094838_7288199655f3a5276cde55.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Value Added Tax; Augmented Dickey Fuller (ADF); Bound Test; Economic Growth; Nigeria;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrn:journl:y:2020:i:2:p:137-152. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Yana Doneva (email available below). General contact details of provider: https://edirc.repec.org/data/uevarbg.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.