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IJSTR >> Volume 9 - Issue 8, August 2020 Edition

International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616

Tax Rates And Economic Growth: A Conjugal Bioscopy

[Full Text]



Sunday A. Effiong, Joseph O. Udoayang, Fadenipo A. Adesola



Tax rates, economic growth, tax base, tax net, personal income tax revenue, company income tax revenue, value-added tax revenue, capital gains tax revenue.



The study considered the conjugal consequences of tax rates and economic growth. A focused investigation was conducted to evaluate the direction of influence of tax rates on economic growth in Nigeria. Secondary data and ex-post-facto design were adopted. The study employed autoregressive distributed lag model (ADRL) to estimate the model coefficients, using annual data for 1989 to 2018; this was because the data used in the study have time attributes and the choice of the method was premised on the fact that it enabled the researchers to examine the long-run and co-integrating relationships between the variables of the study. However, before ADRL was conducted, some residual diagnostic tests such as normality tests, multi-collinearity test, serial correlation, and heteroscedasticity tests were engaged to ensure well-founded empirical results. The findings of the study showed that PITR, VATR, and PPTR have positive and significant relationships with economic growth while CITR has a significant negative effect on economic growth; CGTR however, has no significant relationship with economic growth. It was recommended that the government should systematically review downwards the tax rates in Nigeria and widen the tax base to bring more taxable persons into the tax net.



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