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An Evaluation Of The Effect Of Taxation Policy On Inflation In Nigeria

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  • Tajudeen Adejare Adegbite

    (Al-Hikmah University Nigeria)

Abstract

Taxation is one of the instruments of fiscal policy employed by developing countries to fight inflation. Taxation as a field of study has grown with many contributions from different fields. The gap within the literature regarding different contexts has inspired researchers to look for further explanations about taxation and its effects on inflation. Therefore, this paper aims to provide insight into the effects of taxation policy on inflation in Nigeria. To achieve this, a quantitative research is carried out. Empirical test indicates that taxation had negative significant effect on inflation both in the short run and in the long run. All the components of taxation did not Granger-cause inflation in Nigeria. Additionally, according to the results, taxation is an effective hedge against inflation in the country.

Suggested Citation

  • Tajudeen Adejare Adegbite, 2019. "An Evaluation Of The Effect Of Taxation Policy On Inflation In Nigeria," Copernican Journal of Finance & Accounting, Uniwersytet Mikolaja Kopernika, vol. 8(2), pages 7-23.
    • Handle: RePEc:cpn:umkcjf:v:8:y:2019:i:2:p:7-23
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    References listed on IDEAS

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    1. Johansen, Soren, 1991. "Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models," Econometrica, Econometric Society, vol. 59(6), pages 1551-1580, November.
    2. Robert Engle & Clive Granger, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
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    Cited by:

    1. Johnbosco Chukwuma Ozigbu, 2023. "Responsiveness of Headline Inflation to the Dynamics of Monetary Aggregates in Nigeria: A Structural Vector Autoregressive (SVAR) Approach," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(9), pages 1701-1711, September.

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