A Publication of the Department of Economics
Rivers State University, Port Harcourt.
Economic Desk Journals is an institutional based platform for academics and professionals to share the latest developments in empirical research with practical applications and analysis of theoretical andmethodological developments in the field of Economics and allied Discipline. Economic Desk Journals is a peer-reviewed open access journal. >>>
| Title: | Revenue Mobilization And Economic Development In Nigeria |
| Author(s): | WASURUM Edward, MATON-AWAJI, C. Amini & Amadi C. Rose |
| Abstract: | This study examined the impact of tax mobilization on Nigerian economic development using timeseries data spanning 1981 to 2020. In the framework of this work, revenue mobilization is decomposed into corporate income tax, valueadded tax, customs and excess duties, and oil revenue, while economic development is decomposed into poverty, unemployment, and inequality in Nigeria. The Phillip Perron test was used to determine the variable's stationarity, and the three equations were estimated using the wellknown autoregressive distributed lagged (ARDL) technique to econometrics. Hence, the study revealed that: custom and excess duties (CED) promote poverty by 0.050895 units, promotes unemployment by 0.028604, and inequality by 0.864662 respectively. Income tax (CIT) decreases poverty by 0.017858, unemployment by 0.023049, and positively influences income inequality by 0.013221. Valueadded tax (VAT) promotes poverty by 0.025058, declines unemployment by 0.002151, and influences income inequality by 0.0084 and unemployment by 0.000205. Hence, the study concludes that revenue mobilization predicts economic development in Nigeria. Therefore, the study recommends that revenue accruable from custom and excess duties should be used to provide social infrastructure to close the infrastructural gap which has heralded economic development in recent times. Also, the tax rate on company income tax should be reduced to broaden the tax base which can improve the volume of revenue from the sector and cause a decline in the rate of unemployment in Nigeria. A fall in the rate of unemployment will stimulate economic development. |
| Keywords: | Revenue, mobilization, economic growth, poverty, inequality, and unemployment |
| Journal: | Journal of Contemporary Research in Economics and Development Studies (JCREDS) |
Copyright © 2021 - All Rights Reserved - Economic Desk Journals
Powered by 