Do government taxes have implications on manufacturing sector output? Evidence from Nigeria

Oladipo, O.A. and IYOHA, Francis and Fakile, Samuel Adeniran and Asaleye, Abiola John and Eluyela, F. D. (2019) Do government taxes have implications on manufacturing sector output? Evidence from Nigeria. Journal of Management Information and Decision Sciences, 22 (3). pp. 181-190. ISSN 1532-5806

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Abstract

Background: The implications of taxes on output have generated different debates and controversial issues among scholars, most especially in developing economies. Objectives: Hence, the short and long-run impact of taxes on output in the manufacturing sector is examined in Nigeria. Method: To achieve these objectives, the study investigates the effect of company income and value-added taxes on the output of the manufacturing sector in Nigeria using Auto-Regressive Distributed Lags. Results: The long-run result revealed that there is a positive relationship between corporate taxes and the output of the manufacturing sector, while value-added tax reveals a negative relationship with the output. Evidence from the short-run result shows that company income tax is not statistically significant at the level of 5 per cent confirming the Ricardian Equivalence, although, the value-added tax is observed to be positively related to the output of the manufacturing sector. Conclusion: The implications of the result revealed that fiscal measures via taxation and expenditure have not enhanced the productive capacity of the manufacturing sector in Nigeria. Keywords: Tax; Output; Manufacturing Sector

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 15:59
Last Modified:	19 Sep 2019 15:59
URI:	https://eprints.lmu.edu.ng/id/eprint/2308

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