Tax Revenue and Economic Growth in Selected ECOWAS Countries, Evidence from Sure Model
Journal Title: International Journal of Academic Research in Accounting, Finance and Management Sciences - Year 2018, Vol 8, Issue 3
Abstract
The need for African countries to improve tax revenue-GDP ratio has open up debate among policy makers. This study is motivated to analyse the impact of tax revenue, direct and indirect tax on economic growth of ECOWAS countries, using Seemingly Unrelated Regression Estimate (SURE) analysis for five selected Economic Community of West African States (Nigeria, Ghana, Sierra Leone, Benin and Burkina Faso) using data from 2000-2015 generated from World Bank World Development Indicators, 2016. Findings reveal that total tax revenue has positive and significant effect on economic growth an increase in total tax revenue by $1 causes economic growth by 43.2 percent while an increase in direct tax revenue by the same amount dampens growth by -3.08 percent, an indication that direct tax is unproductive in the countries of study. Also an increase in indirect tax revenue by $1 led to a corresponding increase in economic growth by 47.7 percent. For those countries where indirect tax are unproductive, there is need to broaden indirect tax base instead of direct tax rate.
Authors and Affiliations
Joshua Ose Oboh, Okafor Joan Chinonyelum, Richardson Kojo Edeme
Keywords
Related Articles
- EP ID EP505894
- DOI 10.6007/IJARAFMS/v8-i3/4917
- Views 72
- Downloads 0
Examining the Relation of EVA (Economic Additional Value) and ROE (Return on Equity) and ROA (Return of Assets) in Cement and Construction Industries in Tehran Stock Exchange Companies
Present study is to examine relation of EVA with ROA and ROE in the companies registered in Tehran stock exchange so 42 companies whose data were available for five years (From 2008 to2012) by virtue of the defined limit...
Studying Impact of price Satisfaction on Loyalty: a Case Study in Electric Generating Plant Snowa
In recent years, an increasing understanding of the necessity of making long-term relationships has been created between purchasers of commodities with services and their suppliers. This enterprise particularly confirms...
An Analysis on the Impact of Participatory Budgeting and Procedural Fairness Toward Manager’s Commitment and Performance
This study aims to test the effect of participatory budgeting and procedural fairness on the manager's commitment and performance either have simultaneous or partial effect. The method of the research used was a survey m...
Socially Responsible Activities - An Efficient Tool for the Companies for Marketing Communication with the Consumers
Determining the Impression and Risk of SMEsin Developing Financial Accepted Companies in Tehran Money Exchange