Revenue Per Capita and Economic Growth Nexus: Building a New Revenue Framework for Nigeria (Published)
The challenging consequences of poor economic performance across most emerging economies is a reflection of the weak public revenue management system. Hence, the study into Revenue per capita and Economic growth nexus: Building a new revenue framework for Nigeria. The study employed the Parsimonious Error Correction Model (ECM) for adjusting the parameters of auto regressive distributed lag (ARDL) model to examine the outcome of economic growth, proxy of real gross domestic product (RGDP) on Revenue per capita, proxy of gross national product per capita(GNPPC); gross fixed capital formation (GFCF); and Inflation rate (INFR). The finding revealed a significant positive relationship between GDP and its lagged value, as well as GNPPC. Whereas, a negative but significant impact subsist between GDP and lagged value of GNPPC; while, an insignificant negative impact exists between GDP and GFCF and its lagged value. Inflation rate exhibited a moderate significant inverse relationship with economic growth during the review period. Based on the finding, It was recommended among others: tax revenue generating agencies should pursue fiscal sustainability by rethinking Nigeria’s tax policy mix and design to consummate enduring prosperity for Nigerians.
Citation: Opuala-Charles S. and Orji J.O. (2022) Revenue Per Capita and Economic Growth Nexus: Building a New Revenue Framework for Nigeria, International Journal of Development and Economic Sustainability, Vol.10, No.6, pp.1-17
Keywords: Investment, Tax Revenue, economic growth, revenue per capita
Tax Buoyancy and Elasticity in Nigeria: The Case of Aggregate Tax (Published)
This study was motivated by the growing demand for government funds to meet up with their expenditures as well as diversification for different streams of income. Empirical evidence has shown that the buoyancy and elasticity of tax are two clear ways of measuring how tax revenue responds to changes in income. This study adopted secondary data sets, which were sourced from CBN statistical Bulletin, National Bureau of statistics (NBS) and Federal Inland Revenue Service (FIRS) of Nigeria. A standard multiple regression estimation procedure in the form of the vector error correction model (VECM) model was adopted. The result from the study showed that tax revenue is significantly buoyant and elastic in Nigeria. In view of the result the study recommended among others that, the government introduces policies that will help her take advantage of the potentials inherent in the country and increase its tax revenue thereby having another source of financing its budget other than the current crude oil proceeds.
Keywords: GDP, Nigeria, Tax Buoyancy, Tax Elasticity, Tax Revenue
TAX BUOYANCY AND ELASTICITY IN NIGERIA: THE CASE OF AGGREGATE TAX (Review Completed - Accepted)
This study was motivated by the growing demand for government funds to meet up with their expenditures. Empirical evidence has shown that the buoyancy and elasticity of tax are two clear ways of measuring how tax revenue responds to changes in income. This study adopted secondary data sets, which were sourced from CBN statistical Bulletin, National Bureau of statistics (NBS) and Federal Inland Revenue Service (FIRS) of Nigeria. A standard multiple regression estimation procedure in the form of the vector error correction model (VECM) model was adopted. The result from the study showed that tax revenue is significantly buoyant and elastic. In view of the result the study recommended among others that, the government introduces policies that will help her take advantage of the potentials inherent in the country and increase its tax revenue thereby having another source of financing its budget away from the current crude oil.
Keywords: GDP, Nigeria, Tax Buoyancy, Tax Elasticity, Tax Revenue