DOES TAXATION HAS IMPACT ON INVESTMENT? AN EMPIRICAL RESPONSE FROM CO-INTEGRATION ANALYSIS

Authors

  • Tajudeen A. ADEGBITE Al-Hikmah University, Ilorin. Kwara State, Nigeria

DOI:

https://doi.org/10.26458/1931

Keywords:

Taxation, Investment, Co-integration analysis, Corporate income tax

Abstract

ABSTRACTThis 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.

Author Biography

Tajudeen A. ADEGBITE, Al-Hikmah University, Ilorin. Kwara State, Nigeria

Dr Tajudeen A. AdegbiteSenior Lecturer, and Ag. HOD.,Al-Hikmah University,Ilorin. Kwara State, Nigeria

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Published

2019-10-01

How to Cite

ADEGBITE, T. A. (2019). DOES TAXATION HAS IMPACT ON INVESTMENT? AN EMPIRICAL RESPONSE FROM CO-INTEGRATION ANALYSIS. Annals of Spiru Haret University. Economic Series, 19(4), 57–74. https://doi.org/10.26458/1931

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Section

ACADEMIA PAPERS