g. Mar 16, 2004 · The focus of this article is to examine the relationship between local economic growth and development and local government revenue capacity. The point of argument that attracted economic litera-ture and academic research during the second decade of the 21st century is the interaction of government revenue with the quality of institutions. Company Income Tax will influ ence economic growth (GDP) by 546% an d 337% Jun 10, 2022 · Increased aggregate demand (AD) A budget deficit implies lower taxes and increased Government spending (G), this will increase AD and this may cause higher real GDP and inflation. To assess the effect of tax revenue on the economic growth. (2013). Apr 14, 2021 · In this study, the relationship between tax revenue, government expenditure, and economic growth has been examined for Canada, France, Germany, Italy, Japan, UK, and the USA—the G7 countries gulations (institutional quality) may help increase government revenues, but it can be detrimental to economic growth. 2021, from th e Rwanda Revenue Authority (RRA) statistical bulletin an d annual reports and National I nstitute of Feb 1, 2020 · This stu dy places an emphasis on the relationship between federally received. 8% in 2022, reflecting a decline in diamond Aug 22, 2012 · There have several impacts of taxes due to economic growth whether it is positive or negative impacts. The specific objectives of the study 1. The purpose of this study is to analyze the impact of the government revenues and government expenditures on the economic growth in Romania, over the period 1998q1 - 2014q1. It is expected that tax revenue The results show the negative impacts of the budget deficit and external debt on the Real GDP, while government expenditure has a positive impact on the real GDP. This Impact of Government Expenditure on Economic Growth in Nigeria, 1970-2019 Aluthge et al. This study analyses the impact of Non-oil Tax Revenue on Economic Growth from 1993 to 2012 in Nigeria. Apr 5, 2023 · Otekunrin, et al. The implication is that an increase in Value Added Tax and. 3) is among the highest in the world. The ARDL long-run result shows that fiscal Mar 1, 2023 · The fe deral government of Nigeria spent 12,164. The study examined the Impact of Tax Revenue on Economic Growth in Nigeria for the period of 1999 to 2021. Churchill, Ugur and Yew (2016) investigated the nexus between public spending and Jun 29, 2024 · Impact on Tax Revenue. 22%, 0. put growth using Italian data spanning from1861 to 2008 and the finding established a non-linear relationship between public spending and economic growth for Italy. Suna et al. 5. The main objective of this study is to empirically investigate the role of governance in the government revenue – economic growth relationship for a balanced panel of 17 e. SCOPE OF THE STUDY The study covers the period 1981-2016, The general objective was to evaluate effect of fiscal policies on the economic growth in Kenya. 1. This study scrutinizes the effect of government revenue-institutional quality interaction on the economic growth of 43 Sub-Saharan Africa countries for the period of 2012–2022 Salami, Amusa & Ojoye (2018), studied impact of non-oil revenue on the economic growth of Nigeria. I use Granger causality test through cointegrated vector autoregression (VAR) methods to determine whether government revenues have or not a more influent role However, indirect tax revenue and non-tax revenue positively significantly i mpact economic growth while impact of direct tax revenue on economic growth is insignificant. 1 trillion or 59. government revenue mobilization on economic growth in Nigeria. 95% of the country Feb 6, 2023 · Abstract and Figures. According to the theory of tax competition, the government will reduce the taxes on mobile asset through the Mar 1, 2004 · Wong's research on the relationship between local economic growth and local government tax capacity showed that high property taxes are strongly negatively correlated with the local governments Sep 26, 2021 · The objective of this study is to scrutinize the impact of tax revenue on economic growth in Rwanda from 2006-2021. The data collected wereanalyzed using the Jan 1, 2015 · Abstract. To achieve this research objective, relevant secondary data were used from the 2012 Statistical Bulletin of the Central Bank of Nigeria (CBN). Journal of Business School, vol. Time series secondary data spanning from 2000-2019 used in the study were collected from the Central Bank of Nigeria (CBN), National Bureau of Statistics (NBS Feb 15, 2021 · billion to ₦5. The study's goal is to determine the impact of government revenue on Nigeria's economic growth. Jun 1, 2021 · the period 1970-2019 in Nigeria and a decadal breakdown shows that a verage annual. The study adopted a descriptive and historical design. and D. However, the prior empirical results across different countries witness that the relationship between government tax revenue and economic growth can be negative, positive or neutral depending on countries Jan 20, 2021 · The empirical results are indication of long- and short-run positive impacts of government tax revenue on economic growth in Ethiopia. This paper examines the relations of government expenditure and economic growth of Nepal over the period of 1990-2019. 0866 percent decline in economic growth while revenue allocation share impact on economic growth in Nigeria? Research Hypothesis Federal government revenue allocation share has no significant impact on economic growth in Nigeria. Review of Related Literature Sep 10, 2021 · A 1% increase in import duty leads to a decrease in GDP by 0. Research almost invariably shows a negative relationship between income tax rates and gross domestic product (GDP). 3 percent) from FY 2019. Nov 23, 2023 · On the other hand, Helms utilizing the cross sectional and pooled time series studied the effect of taxes on economic growth in the United States and concluded that higher taxation and other non-tax revenues of the government at the State and local government level negatively affected economic growth when revenue was used by the government to Mar 5, 2014 · Abstract. Ijirshar1,2, Gaius M. This study adopts endogenous growth model (AK model) as its theoretical framework. However, Aug 27, 2018 · Abstract and Figures. 3). [Google Scholar] Hlongwane, Themba, Itumeleng Pleasure Mongale, and Luzuko Tala. growth rate of total government e xpenditure are around 31. To achieve this objective, relevantsecondary data were collected from the Central Bank of Nigeria(CBN) Statistical Bulletin, FederalInland Revenue Service (FIRS) and previous works done by scholars. A. This paper therefore examined the relationship between government revenue and economic performance (growth) of Nigerian economy. The rising cost of Nigeria’s debt profile breached a new milestone with the country’s debt service as a percentage of revenue rising to 83% in 2020. This increase in consumer spending will cause an increase in the amount of tax revenue the government gain from VAT. A model is established to determine the relationship between the number of agricultural, manufacturing, service, and retail establishments per capita and employees per capita on real local government property tax capacity per capita. 9% (2023Q3), and the level of inequality (Gini index of 53. Numerous studies have indicated that tax policies aimed at increasing government revenue have been regarded as an impediment to economic growth in both the short and long run. 2018. The study covered the period 1981-2016 and gross domestic product was adopted as the proxy for economic growth and it was also used as the dependent variable. 546. Lower tax revenue may encourage saving and investment, but it also leads to an tax revenue and economic growth. To maintain reasonable price stability, governments are determined to promote the near-full employment of all the resources of the country (including human resources) and ensure a satisfactory rate of Azubike and Onukwube (2019), investigated the impact of government revenue on Nigeria's economic growth. 61% positive impact on the growth of Nigerian economy. However, the interactive coefficient of government revenue and economic growth positively affected the real GDP growth rate of SSA countries over the study While the empirical findings on the relationship between government revenue and economic growth reviewed in this study are dated back to data obtained in 2013, this study adds to knowledge by considering an assessment of the impact of government revenue mobilization on economic growth in Nigeria from 1981-2018. Bundepuun1, Ashifa Ter-sugh and Ayila Ngutsav1 This study examines the relationship between government expenditure and economic Jan 1, 2016 · Studies have however, showed that mismanagement and misapplication of domestic debt have a negative impact on the other sources of revenue of government and economic growth (Irabor, 2011; Okwori Jan 5, 2023 · In this study w e use d quarterly data covering the period from 2006 to. The findings determine that huge government expenditure could lead to higher economic growth but not spending greater than government revenue, as a deficit leads to economic The findings of this study are in agreement with the finding of Okafor (2012) who investigated the impact of income tax revenue on the economic growth of Nigeria, adopting the ordinary least square (OLS) regression analysis technique to explore the relationship between GDP (the dependent variable) and a set of federal government income tax Aug 24, 2022 · Heitger, Blessing. To do this, annual time series data were collected and the study Apr 2, 2024 · Poverty remains high despite Botswana’s relatively high income level. The test carried out on the various tax revenues to determine their individual impact on GDP shows that petroleum profit tax, custom and excise duty, company income tax and value added tax have a positive impact on Nigeria‘s economic growth development. Research data was collected from the World Bank from 1972 to 2019. 1 CONCLUSION The findings of this study contribute towards a better understanding of tax Dec 19, 2019 · Considering the importance of a country's economic development, as well as the impact of government expenditure on economic development, we have analyzed government expenditure for the period 2002 Where We Are Now. Job creation has been lagging, unemployment is structurally high at 25. This paper explores the impact of taxation on economic growth in Jamaica. The government’s net cost before taxes and other revenues for FY 2020 was $7. Aug 25, 2022 · a positive impact on the economic growth, it is seen to have a positive effect and aid economic growth while the effects of direct tax are discreet. Jun 1, 2023 · The main objective of this study is to examine the impact of non-oil revenue on economic growth in Nigeria from 1990 to 2021. The study specific goal is to Jun 14, 2022 · See research on income tax changes on economic growth (income taxes economy). Gross domestic product (GDP) as a proxy for economic growth is the dependent Jan 5, 2016 · Precisely, before interacting with institutional quality, a percentage change in government revenue, keeping all other things constant, leads to a 0. (2020) confirmed the negative effect of tax on the economic growth in the short and long run, while Romer and Romer (2010) suggest that increase the tax / GDP Aug 9, 2023 · This study examined the impact of government revenue and expenditure on economic growth in Nigeria utilizing time series data spanning from year 2000-2021. State government revenue allocation share has no significant impact on economic growth in Nigeria. Modelling the Impact of Government Expenditure on Economic Growth in Nigeria: The Moderating Effects of Oil and Non-oil Revenue Victor U. Mashkoor, M; Yahya, S; and Ali, S. 10,231. In 2023, total tax revenue collected by all states topped $4. Prior to now many studies have been completed on the Jan 31, 2022 · The negative effect of taxes is as obvious as the economic growth theories, but it depends on the taxation revenue. This study seeks to establish the impact of tax revenue and infrastructural development (through investment) on economic growth in Nigeria. 783% holding all the other variables constant. Economic growth also plays a role in reducing debt to GDP ratios. 4 trillion - an increase of $2. Both descriptive and econometric techniques were employed for the purpose of analysis. Sep 1, 2022 · The purpose of this study was to analyze the impact of government spending on economic growth in the province of Bengkulu using secondary data observation period 2001 - 2012 year were obtained Nov 20, 2022 · In Zimbabwe, Canicio and Zachary (Citation 2014) investigated the effects of government tax revenue growth on economic growth from 1980 to 2012. 82. Cuts to marginal tax rates are correlated with decreases in unemployment rate. Using city‐level Dec 27, 2019 · Precisely, before interacting with institutional quality, a percentage change in government revenue, keeping all other things constant, leads to a 0. This is done by using a general autoregressive distributed-lag model, which jointly of the that an increase in PPT, VAT and GDD by 1% will have 0. For example, in 2009, the UK lowered VAT in an effort to boost consumer spending, hit by the great recession. 06 trillion while GDP continued to wobble between 4. 7% in 2015 with less than. O. 109-125 . negative correlation with Nov 29, 2023 · Currently, the literature debate has surpassed a mere linkage between government revenue and the economic growth of countries. 2. This study is intended to conduct a review of tax revenue and economic growth in Indonesia. The government expenditure of Nepal has been significantly increasing during the study period. Aug 31, 2022 · growth (GDP) in Nigeria at 5% level of s ignificance. 70, 23. 3 showed that about 99%. On the other hand, the study adopted non-oil revenue as the independent variable. economic growth in Nigeria from 1985 to 2004, it was found that customs and excise duties had a. The data for this time series was taken from the 2016 Statistical Bulletin of the Central Bank of Nigeria. Fund public sector investment. (2001) Financial Management Mar 31, 2022 · found that VAT had significant effect on the growth of Nigerian economy. 13270 Corpus ID: 246707398; The Impacts of Tax Revenue and Investment on the Economic Growth in Southeast Asian Countries @article{Nguyen2022TheIO, title={The Impacts of Tax Revenue and Investment on the Economic Growth in Southeast Asian Countries}, author={Hoa Thi Nguyen and Susilo Nur Aji Cokro Darsono}, journal={Journal of Accounting and Investment}, year={2022 Mar 16, 2018 · The study examined the impact of tax revenue on Nigeria’s economic growth using CIT, VAT and PPT as referents for tax revenue and GDP for economic growth from 2008 to 2017. Net cost equals gross costs of $7. For instance, indirect tax revenue and human capital affected growth positively (Table 5. 6% debt service to revenue ratio. , 2021 This study was conducted to investigate The Impact of Government Expenditure on Economic growth in Ethiopia" by using time series data of 1970/71 to 2010/11, applying Ram's (1986) endogenous growth accounting model. Further, the R-square of the ARDL model on Table 4. (Citation 2020) investigated the impact of non-oil revenue of the economic growth of Nigeria where company income tax, value added tax, personal income tax and custom and excise duties where the non-oil revenue for the period 1994–2018 with data gotten from Federal Inland Revenue Service and National Bureau of Statistics Jun 27, 2021 · Nigeria’s government spent about 2. 663% holding all the other variables constant and a 1% increase in Excise Duty leads to an increase in GDP by 2. The main objectives of the study is to examine the long run and short run impact of tax revenue on economic growth in Ethiopia using GDP per capita, as a proxy for economic growth over the period 1990/91to 2019/20. The relationship between government revenue and economic growth in Keya International Academic Journal of Information Sciences and Project management, 1(1), 87-109. The unit root test results reveal that there is mixed level of stationarity in the variables. To evaluate the impact of exchange rate on economic growth of Nigeria. Secondary data were used by Oseni (2016) to examine VAT effect on profile of government’s. 7 billion naira in 2020, an increase of 18. Regarding economic growth, the study concludes that there has been an increase in the economic growth in Nepal over the years. The results of this study indicate that tax revenues can significantly increase economic Nigeria’s government spent about 2. The findings reveal that petroleum profit tax, company income tax and value added tax have a positive impact on Nigeria’s economic growth while custom excise and duties impacted negatively but overall, a significant relationship between tax revenue and the Nigerian economic growth exists. 18 billion. To investigate how the government expenditure affect economic growth. Using city-level data from 2003 to 2016, we construct the revenue retention rate at the sub-provincial level to test the impacts of fiscal incentives on economic growth. 3. This study was conducted to investigate The Impact of Government Expenditure on Economic growth in Ethiopia" by using time series data of 1970/71 to 2010/11, applying Ram's (1986) endogenous growth accounting model. Growth is projected to slow down to 3. Economic growth creates higher tax revenues, and there is less need to spend money on benefits such as unemployment benefit. 4 Research Hypotheses HO 1. Change in GDP is adopted as proxy for Jan 1, 2024 · This study investigates the impact of tax revenue on economic growth in the context of increasing trade openness in developing countries by using the data of 29 developing countries with Nov 30, 2021 · Assessment of the Impact of Government Revenue Mobilisation on Economic Growth in Nigeria November 2021 Journal of Economics Business and Accountancy Ventura 24(2):314 Nov 1, 2012 · The study examines the impact of tax revenue on the economic growth of Nigeria, judging from itsimpact on infrastructural development from 1980 to 2007. 80% decline. Therefore economic growth helps to reduce government borrowing. The bound test result shows that the variables cointegrate. Findings revealed that. 110. Jan 20, 2021 · Tax revenue is believed to provide developing countries with a stable and predictable fiscal environment to promote growth and to finance their social and physical infrastructural needs. In ge neral, it is believed that Nige Aug 25, 2022 · Adeusi et al. 82 percents over the Aug 5, 2020 · Abstract and Figures. The utilization of the generated revenue from taxes Oct 25, 2023 · This study revisited the impact of fiscal decentralization on China's economic growth, focusing on the role of the revenue‐sharing system in providing local fiscal incentives. 45 trillion Nigeria Naira in debt service in 2019 out of total revenue of N4. Government deficit spending. 38% and 0. . Journal of Economic Literature 22: 38–39. 87%. Finally, they have co-integrated and long-run relationship in the economy Apr 28, 2018 · Atems (2015) and Al-tarawneh et al. In 2023 Sep 3, 2020 · One strand of empirical studies examines a linear effect of oil revenue on economic growth assuming that the impact of oil revenue on the economy is linear irrespective of the state of the economy Brian (2007), analyzed the effects of tax revenue on economic growth in Uganda‘s experience for the period 1987 to 2005. To maintain reasonable price stability, governments are determined to promote the near-full employment of all the resources of the country (including human resources) and ensure a satisfactory rate of In the long run, productive government consumption, indirect tax revenue, human capital, labor force and capital stock were statistically signif-icant and had a long run effect on Ethiopian economic growth. The Scope of Government and Its Impact on Economic Growth in OECD Countries. That's ok. Regardless of theoretical grounds that presumed a positive relationship between government spending and economic growth, the extant research on this nexus is inclusive. The result suggests that tax revenue exerted a positive and statistically significant effect on economic growth both in the long run and short-run implying that tax revenue enhances economic growth in Ethiopia. There is no impact of exchange rate on economic growth of Nigeria. 1% in the first and sec ond quarters of 2016. The pattern of government spending of Nepal seems to be focused on regular expenditure and widening the budget deficit of Nepal each Oct 25, 2023 · This study revisited the impact of fiscal decentralization on China's economic growth, focusing on the role of the revenue-sharing system in providing local fiscal incentives. The research recommends that policymakers implement optimal and enabling tax policies to support Kenya's economic growth. Oil revenue has no impact on economic growth of Nigeria. An investigation by Aliyu (2020) [3] examines the impact of tax income on Nigeria's economic growth between 1981 and 2017. World Applied Science Journal, 10(11), 1283-1289. An increase in revenue from CIT, CED by 1% will cause a 0. Tax revenue and economic growth: an empirical analysis for Pakistan. increased from 6,248. Benefits. and 11. To evaluate the impact of external debt on the economic growth. The trends of tax revenue and GDP per capita growth rate of Ethiopia is fluctuating during specified time of period. Sep 9, 2023 · Linking taxation to sustainable development, taxation as a means of revenue generation in every economy is highly germane because it is the most common fiscal policy parameter that influences government revenue and expenditure to achieve developmental objectives that help to attain sustainable economic growth and development (Gupta et al. 2, pp. Presenting an opportunity to spur green growth, it sets out a much more ambitious scenario of climate change mitigation, which would see a 70 percent reduction in net Abstract: Theoretically and empirically explain that tax revenue has an impact on economic growth. Dec 14, 2019 · Lower government borrowing. domestic debts and non Jun 1, 2020 · Olopade C. Aug 1, 2021 · This study examined the effect of federal government revenue and expenditure on the economic growth of Nigeria for the period 1983 to 2018. These data were analyzed using the Ordinary Least Squares Regression. From the study, tax revenue was found to have had an impact on the economic growth level of the country, with direct taxes having a positive effect while indirect taxes had a negative impact. 9% in 2010 and 2. Dec 1, 2021 · Another factor that will impact Russia’s economy in the longer-term, is the country’s new Low-Carbon Development Strategy, released by the Government on October 29, 2021. The International Monetary Fund's (IMF) 2017 Article IV Consultation report on Zimbabwe's economic update claims that unchecked government expenditure could be a hindrance to Nov 29, 2023 · The result of the study reveals that government revenue adversely affects economic growth while institutional quality positively enhances economic growth before interacting with each other. An improvement in the government budget balance – An increase in economic growth is often spurred by increased consumer expenditure. International Journal of Energy Economics and Policy | Vol 13 • Issue 2 • 2023. 3% in 2023, from 5. The study concluded that that total Tax has a statisticaly significant relationship with economic growth with a P-value of 0. Time series data from Rwanda Revenue Authority (RRA) and the National Institute of Statistics of Rwanda spanning from 2006Q1–2021Q4 were collected. Asombo1, Florence D. 95% and 0. HO 2. Olopade (2010): The Impact of Government Expenditure On Economic Growth and Development in Developing Countries: Nigeria as a Case Study Orijh J. Dec 1, 2022 · economic growth nexus, the study used multiple regression to estimate the impact of. 2 trillion, less earned program revenues (e. 6 Nov 11, 2020 · The government revenue has negative effect to GDP growth in the short run and positively related in the long run. Foreign direct investment has no impact on economic growth of Nigeria. 3 trillion (46. 20, 41. 1 billion naira in 2021 c ompared to. 00. v23i1. Nov 29, 2023 · Following the approval of sustainable development goals at the global level, the link between fiscal policy, institutional quality, and economic growth has attracted special attention in economic literature. Analysis of the Impact of Fiscal Policy on Economic Growth in South Africa: VECM Approach. According to Biruk (2016), there was short and long-run fiscal independence between tax revenue and economic growth in Ethiopia. Only a few studies have been conducted on the relationship between government tax revenue and economic growth in the Ethiopian context. 24, 15. Furthermore, economic growth causes a reduction in unemployment. Specifically, the impacts of tax revenue proxied by company income tax, value added tax, petroleum profit tax, custom & excise duties and education tax on Economic Growth represented with gross domestic product were studied. (2010). 5, issue. Higher government spending will also have an impact on the supply-side of the economy – depending on which area of government spending is increased. The findings of this study are in agreement with the finding of Okafor (2012) who investigated the impact of income tax revenue on the economic growth of Nigeria, adopting the ordinary least square (OLS) regression analysis technique to explore the relationship between GDP (the dependent variable) and a set of federal government income tax Mar 19, 2019 · Increased government spending is likely to cause a rise in aggregate demand (AD). Findings of the research showed that federal government retained revenue; non-oil revenue and recurrent expenditure were statistically significant in explaining the relationship with economic growth in the short run; while capital expenditure was not at 5% Abstract. Economic growth and development:The sole management of the economy rests on the federal government in which taxation plays an important role. Dec 10, 2023 · In a study conducted by Odusola (2006) on the impact of various taxes on. revenue generation in Nigeria Nov 29, 2023 · This study scrutinizes the effect of government revenue-institutional quality interaction on the economic growth of 43 Sub-Saharan Africa countries for the period of 2012–2022. (2019) studied the impact of direct government revenue, economic growth. , Medicare premiums, national park entry fees), and then adjusted for gains or losses from correlation with economic growth, while income tax has a positive impact on GDP. Oct 18, 2021 · This study examines the impact of fiscal, monetary and trade policies on Nigerian economic growth from 1985 to 2020. 18196/jai. 0866% decline in economic growth while it marks This study was therefore poised to empirically examine the impact of government revenues and economic growth in Nepal of last five years for the period between FY 2070/71 and FY 2074/75 by employing Economic Growth (EGR) as the dependent variable and Direct Tax Revenues (DTX), Indirect Tax Revenues (ITX) and Non-Tax Revenue (NTX) as the Aug 20, 2021 · This study examined the effect of federal government revenue and expenditure on the economic growth of Nigeria for the period 1983 to 2018. Muriithi, C. : Impact of Oil and Non-oil Tax Revenue on Economic Growth in Nigeria. They found an independent relationship between economic growth and total government tax revenue with a 30% speed of adjustment in the short run toward the equilibrium level in the long run. One of the most immediate effects of marijuana legalization is its effect of tax revenue. According to Bofah (2003), taxes refer to the revenue that is collected by the government to provide services and finance themselves. II. It can also potentially lead to inflation. This can lead to higher growth in the short-term. 2. Introduction local financial independence as well as its impact on economic growth and the Jan 31, 2022 · DOI: 10. HO 3. revenue, VAT inclusive and the economic growth of Nigeria from 1981 to 2018. dj xn kl qs ia by au wc hs tp