IDEAS home Printed from https://ideas.repec.org/a/ris/sphecs/0315.html

Does Taxation Has Impact On Investment? An Empirical Response From Co-Integration Analysis

Author

Listed:
  • Tajudeen Adejare ADEGBITE

    (Department of Accounting, Al-Hikmah University)

Abstract

This study examined the effect of taxation on investment in Nigeria from 1970 to 2018. Relevant secondary data were obtained from Central Bank of Nigeria (CBN) Statistical Bulletins and Federal Inland Revenue Services Bulletin from 1970 to 2018. Regression analysis technique, Units root test, Johansen co-integration, Vector Error-Correction Model, and Granger causality tests were employed to determine the long run relationship and causality links among the variables. Results showed that PPT and Value added tax had positive significant impact on INV both in the short run and in the long run while Company income tax, and Custom and Excise duties impacted INV negatively. It is concluded that all components of taxes had positive significant impact on investment in Nigeria except corporate income tax. Corporate income tax had negative significant impact on investment both in the short run and in the long run

Suggested Citation

  • Tajudeen Adejare ADEGBITE, 2019. "Does Taxation Has Impact On Investment? An Empirical Response From Co-Integration Analysis," Annals of Spiru Haret University, Economic Series, Universitatea Spiru Haret, vol. 19(4), pages 57-74.
    • Handle: RePEc:ris:sphecs:0315
    as

    Download full text from publisher

    File URL: http://anale.spiruharet.ro/index.php/economics/article/view/1931/pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Arnold C. Harberger, 1962. "The Incidence of the Corporation Income Tax," Journal of Political Economy, University of Chicago Press, vol. 70(3), pages 215-215.
    2. Mehmet Serkan Tosun & Sohrab Abizadeh, 2005. "Economic growth and tax components: an analysis of tax changes in OECD," Applied Economics, Taylor & Francis Journals, vol. 37(19), pages 2251-2263.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Onyema, Chukwuemeka Collins & Ojo-Agbodu Ayodele. A. Ph & Adebayo M. Adeniyi PhD, 2024. "Tax Collection Techniques and Revenue Generation in Lagos State, Nigeria – A Study of Lagos State Board of Internal Revenue Services," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(2), pages 713-727, February.

    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. Alban Elshani & Leke Pula, 2023. "Impact of Taxes on Economic Growth: An Empirical Study in the Eurozone," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 24-41.
    2. Barış Kaymak & Immo Schott, 2023. "Corporate Tax Cuts and the Decline in the Manufacturing Labor Share," Econometrica, Econometric Society, vol. 91(6), pages 2371-2408, November.
    3. Canavire-Bacarreza, Gustavo & Martínez-Vázquez, Jorge & Vulovic, Violeta, 2013. "Taxation and Economic Growth in Latin America," IDB Publications (Working Papers) 4583, Inter-American Development Bank.
    4. Rajagopal, Dagmar & Shah, Anwar, 1995. "A rational expectations model for tax policy analysis: An evaluation of tax incentives for the textile, chemical and pharmaceutical industries of Pakistan," Journal of Public Economics, Elsevier, vol. 57(2), pages 249-276, June.
    5. Yoonkyo Cho & Taehwan Kim & Jaewhak Roh, 2021. "An analysis of the effects of electronic commerce on the Korean economy using the CGE model," Electronic Commerce Research, Springer, vol. 21(3), pages 831-854, September.
    6. Olga Kiuila & Thomas F. Rutherford, 2014. "Economic modeling approaches: optimization versus equilibrium," Working Papers 2014-04, Faculty of Economic Sciences, University of Warsaw.
    7. Kevin J. Murphy, 2003. "A General Equilibrium Model of the Payroll Tax Incidence of State Unemployment Insurance Systems," Public Finance Review, , vol. 31(1), pages 44-65, January.
    8. Omolo, Miriam W.O., 2012. "The Impact of Trade Liberalization on Poverty in Kenya: A Microsimulation," Conference papers 332220, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    9. Bjarne S. Jensen, 2004. "Pareto Efficiency, Relative Prices, and Solutions to CGE Models," DEGIT Conference Papers c009_006, DEGIT, Dynamics, Economic Growth, and International Trade.
    10. Nakakuki, Masayuki & Otani, Akira & Shiratsuka, Shigenori, 2004. "Distortions in Factor Markets and Structural Adjustments in the Economy," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 22(2), pages 71-99, May.
    11. Victor R. Fuchs & Alan B. Krueger & James M. Poterba, 1997. "Why do Economists Disagree About Policy?," NBER Working Papers 6151, National Bureau of Economic Research, Inc.
    12. Roberto Artoni, 2021. "Passo d'addio (Final recital)," Moneta e Credito, Economia civile, vol. 74(295), pages 213-227.
    13. Stefan Homburg & Henriette Houben & Ralf Maiterth, 2008. "Optimale Eigenfinanzierung der Personenunternehmen nach der Unternehmensteuerreform 2008/2009," Schmalenbach Journal of Business Research, Springer, vol. 60(1), pages 29-47, February.
    14. Alan G. Futerman & Luciano Villegas, 2022. "An Austrian critique of the neoclassical approach to indirect taxes," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 35(4), pages 517-529, December.
    15. Sören Blomquist & Vidar Christiansen & Luca Micheletto, 2010. "Public Provision of Private Goods and Nondistortionary Marginal Tax Rates," American Economic Journal: Economic Policy, American Economic Association, vol. 2(2), pages 1-27, May.
    16. Zemskov Peter & Zemskov Sergey, 2000. "Nizhny Novgorod: Computable General Equilibrium in One Region with Barter and Arrears," EERC Working Paper Series 99-14e, EERC Research Network, Russia and CIS.
    17. Rapanos, Vassilis T., 1995. "The effects of environmental taxes on income distribution," European Journal of Political Economy, Elsevier, vol. 11(3), pages 487-501, September.
    18. Casey B. Mulligan & Trevor S. Gallen, 2013. "Wedges, Wages, and Productivity under the Affordable Care Act," NBER Working Papers 19771, National Bureau of Economic Research, Inc.
    19. Joel Slemrod, 1982. "Down-Payment Constraints: Tax Policy Effects in a Growing Economy With Rental and Owner-Occupied Housing," Public Finance Review, , vol. 10(2), pages 193-217, April.
    20. Bovenberg, A. L. & Keller, W. J., 1984. "Non-linearities in applied general equilibrium models," Economics Letters, Elsevier, vol. 14(1), pages 53-59.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

    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:ris:sphecs:0315. 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: Constantin Mecu The email address of this maintainer does not seem to be valid anymore. Please ask Constantin Mecu to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/ffuspro.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.