IDEAS home Printed from https://ideas.repec.org/a/seg/012016/v7y2022i2p1-31.html
   My bibliography  Save this article

Effects Of Import Tax Expenditure On Revenue Mobilisation In Ghana

Author

Listed:
  • Abel Fumey

    (University of Ghana)

  • Edward Nketiah-Amponsah

    (University of Ghana)

Abstract

This study examines the effect of tax expenditure on import tax revenue mobilization in Ghana by using the Autoregressive distributed lagged model (ARDL) model with structural breaks on a monthly time series data from January 2012 to June 2019. The innovational outlier model was applied to determine the structural breaks in the data series within the bounds testing cointegration model. The findings indicate that expenditure on interest payment, compensation of employees, and grants to other government units have a negative significant effect on import tax revenue in the long run. In addition, the results also revealed that macroeconomic variables such as inflation rate and exchange rate have a negative effect on import tax revenue in the long run. Therefore, the study concludes that tax expenditure have inverse relationship with tax revenue mobilization in Ghana. Therefore, it is recommended that government should put in place financing measures to effectively manage wage bills in order to ensure that the desired public services are delivered in most efficient and fiscally sustainable manner. Furthermore, government should be mindful of the macroeconomic environment and the various tax incentives when mobilizing import tax revenue.

Suggested Citation

  • Abel Fumey & Edward Nketiah-Amponsah, 2022. "Effects Of Import Tax Expenditure On Revenue Mobilisation In Ghana," Journal of Smart Economic Growth, , vol. 7(2), pages 1-31, September.
    • Handle: RePEc:seg:012016:v:7:y:2022:i:2:p:1-31
    as

    Download full text from publisher

    File URL: https://jseg.ro/index.php/jseg/article/view/172/121
    Download Restriction: no
    ---><---

    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:seg:012016:v:7:y:2022:i:2:p:1-31. 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: Radu Lixandroiu (email available below). General contact details of provider: .

    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.