Tax revenue and agricultural performance: Evidence from Nigeria

Oladipo, O.A. and IYOHA, Francis and Fakile, Samuel Adeniran and Asaleye, Abiola John and Eluyela, F. D. (2019) Tax revenue and agricultural performance: Evidence from Nigeria. BUSINESS PERSPECTIVES, 17 (3). pp. 342-349. ISSN ISSN PRINT 1727-7051; ISSN ONLINE 1810-5467

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Abstract

The responsibility of the government of any economy cannot be overemphasized. Likewise, the resources generated and infrastructural development helps to boost the economic growth of any nation. There has been overdependency of Nigerian economy on the oil sector, the major source of revenue. However, this sector has experienced several challenges ranging from devaluation in naira and fall in prices of crude oil in the international market. This serves as a revelation for the Nigerian government to seek an additional source of income. To this end, the main aim of this paper is to examine the impact of total tax revenue on agricultural performance in Nigeria. The study uses Engel and Granger approach to cointegration to establish the long- and shortrun behavior, it was found that a positive and significant relationship exists between revenue obtained in the agricultural sector, capital in agricultural sector proxy by loan and agricultural output, while employment and total tax generated are not significant in the short run. In the long run, employment, capital and total revenue are statistically significant with agricultural output, while tax is insignificant. The implication of the result showed that tax has not yielded desirable result in promoting the agricultural sector in Nigeria. To promote pro-poor growth, long-run employment and improve overall welfare, there is a need to incorporate benefit from tax into agricultural performance. The study recommends among others the need for a systemic approach, given a significant percentage of the total tax generated to boost the development of the agricultural sector. Keywords agriculture output, taxation, employment JEL Classification E62, O4

Item Type:	Article
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HG Finance
Depositing User:	Mr DIGITAL CONTENT CREATOR LMU
Date Deposited:	19 Sep 2019 14:31
Last Modified:	19 Sep 2019 14:31
URI:	https://eprints.lmu.edu.ng/id/eprint/2299

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