Original scientific paper
https://doi.org/10.2478/zireb-2018-0001
Government Tax Policy and Private Sector Development in Nigeria: Evidence from Dynamic Panel Data Model
Hammed Adetola Adefeso
; Faculty of Administration, Obafemi Awolowo University, Ile-Ife, Osun Nigeria
Abstract
This study examined the influence of government corporate tax policy on the performance of 54 randomly selected listed companies that cut across 17 categories of non-fi nancial fi rms in Nigeria over a period of 1990-2002. Using Generalised Method of Moment (GMM) and contrary to the expectation, the study found positive and significant relationship between corporate tax policy and the output performance of quoted manufacturing fi rms in Nigeria. This may be an indication that government revenue from corporate tax was judiciously expended on productive government expenditure such as road, security and power as nearly all fi rms selected are located in Lagos State. The study therefore, suggested that corporate tax if judiciously used in the provision of physical infrastructures and other public goods would reduce the cost of production of the private sector in Nigeria.
Keywords
government; corporate tax; tax policy; manufacturing firms; generalized method of moment
Hrčak ID:
200881
URI
Publication date:
31.5.2018.
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