IDEAS home Printed from https://ideas.repec.org/a/vrs/ecobus/v34y2020i1p1-14n1.html
   My bibliography  Save this article

Effect of Informal Sector Tax Revenue on Capital Development in Lagos Metropolis

Author

Listed:
  • Olabisi Jayeola

    (Federal University of Agriculture, Abeokuta, Nigeria)

  • Afolabi Adegboyega
  • Madariola Folasade Ajewole

    (Crescent University, Abeokuta, Nigeria)

  • Olagunju Adebayo

    (Osun State University, Osogbo, Nigeria)

Abstract

The study investigates the effect of informal sector tax proceeds on capital development in Lagos Metropolis. The study adopted Ex-post facto design to obtain secondary data, covering 20 years (2000–2019) from the Lagos State Internal Revenue Service and the Ministry of Budget and Planning. All the series were tested for normalities to determine the appropriateness of Ordinary Least Square (OLS) regression. The results of the study revealed that tax collected from the association, petty traders, and market men and women had a significant effect on capital development in Lagos Metropolis. It is evident from the monumental capital projects being executed by the government in the Metropolis. The study recommends that the government should not only create an enabling environment for the informal sector to thrive but also give all necessary support for its survival because the sector has contributed to the capital development of the Metropolis through tax revenue.

Suggested Citation

  • Olabisi Jayeola & Afolabi Adegboyega & Madariola Folasade Ajewole & Olagunju Adebayo, 2020. "Effect of Informal Sector Tax Revenue on Capital Development in Lagos Metropolis," Economics and Business, Sciendo, vol. 34(1), pages 1-14, February.
    • Handle: RePEc:vrs:ecobus:v:34:y:2020:i:1:p:1-14:n:1
    DOI: 10.2478/eb-2020-0001
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/eb-2020-0001
    Download Restriction: no
    File URL: https://libkey.io/10.2478/eb-2020-0001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Grace N. Ofoegbu & David O. Akwu & Oliver O, 2016. "Empirical Analysis of Effect of Tax Revenue on Economic Development of Nigeria," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 6(10), pages 604-613, October.
    2. Grace N Ofoegbu & David O Akwu & Oliver O, 2016. "Empirical Analysis of Effect of Tax Revenue on Economic Development of Nigeria," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 6(10), pages 604-613.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. OGNERU, Victor, 2019. "Analysis Of The Relationship Between Tax Revenue And Gross Value Added In The Romanian Economy," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 23(2), pages 37-55, June.
    2. Sangaran Vijesandiran & Priyatharsiny Selvarasa, 2018. "Effects Of Fiscal Policy On Human Development In Sri Lanka: An Empirical Analysis," Journal of Smart Economic Growth, , vol. 3(3), pages 1-36, December.
    3. Kalaš Branimir & Mirović Vera & Andrašić Jelena, 2017. "Estimating the Impact of Taxes on the Economic Growth in the United States," Economic Themes, Sciendo, vol. 55(4), pages 481-499, December.
    4. Theofanis Petropoulos & Yannis Thalassinos & Konstantinos Liapis, 2024. "Greek Public Sector’s Efficient Resource Allocation: Key Findings and Policy Management," JRFM, MDPI, vol. 17(2), pages 1-32, February.
    5. Okere P.A. Ph.D & Uzowuru L.N Ph.D & Mbaeri C.C. Ph.D, 2022. "Fiscal Policy and Human Development in Nigeria (1986-2017)," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(5), pages 545-553, May.
    6. FASUA Henry Kehinde & MAYAKI Adeolu Thompson & ADEBAYO Sunday Fatoba, 2023. "Taxation Policy and Public Economic Growth and Development in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(4), pages 463-473, April.
    7. Anwar Rashed Al Quraan, 2020. "General Sales Tax and Economic Growth in Small Open Developing Countries - Evidence from Jordan," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 16(3), pages 7-15.
    8. Temel Gurdal & Mucahit Aydin & Veysel Inal, 2021. "The relationship between tax revenue, government expenditure, and economic growth in G7 countries: new evidence from time and frequency domain approaches," Economic Change and Restructuring, Springer, vol. 54(2), pages 305-337, May.

    More about this item

    Keywords

    Association; Market women and men; Petty traders and Capital development;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

    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:vrs:ecobus:v:34:y:2020:i:1:p:1-14:n:1. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    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.