Tax Policy and Foreign Direct Investment: A Regime Change Analysis.

GATR Journals Submitter, Onome Christopher Edo, Anthony Okafor, Akhigbodemhe Emmanuel Justice
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引用次数: 5

Abstract

Objective – Tax policies play significant role in the direction of foreign direct investments. We investigate the proposition that tax policies enacted by military and democratic regimes differ on the influence the foreign direct investments. Methodology/Technique – Our hypotheses are tested using the error correction model as we compare the impact of tax policies on flow foreign direct investments in Nigeria between two dispensations: military rule from 1983 to 1999 and democratic rule from 1999 to 2017. Panel data between 1983 and 2017 were obtained from the databases of the World Bank, Central Bank of Nigeria and the Federal Inland Revenue Services. The explanatory variables include company income tax, value added tax, tertiary education tax and customs and exercise duties. Findings – The study reveals that tax variables during the military regime exerted more explanatory power of 79% compared to the civilian administration of 66% with respect to the impact of corporate taxes on FDI. The effect of company income tax on FDI was more pronounced during the military regime than in the civilian regime. FDI had a higher degree of convergence during the military regime compared to civilian rule, and this is vital for policy assessments and comparison. Novelty – We bring to light new evidences on the effects of taxes polices on FDI. Type of Paper: Empirical Keywords: Corporate taxes; Tax Policies; Foreign Direct Investments; Error Correction Model; Military regime; Civilian regime. Reference to this paper should be made as follows: Edo, O.C; Okafor, A; Emmanuel, A. (2020). Tax Policy and Foreign Direct Investment: A Regime Change Analysis., J. Fin. Bank. Review, 5 (3): 84 – 98 https://doi.org/10.35609/jfbr.2020.5.3(3) JEL Classification: E22, F21, H2, P33.
税收政策与外国直接投资:制度变迁分析。
目标-税收政策对外国直接投资的方向起着重要作用。我们研究了军事政权和民主政权制定的税收政策对外国直接投资的影响不同的命题。方法/技术-我们使用误差修正模型对假设进行了检验,因为我们比较了税收政策对尼日利亚两种情况下外国直接投资流量的影响:1983年至1999年的军事统治和1999年至2017年的民主统治。1983年至2017年的面板数据来自世界银行、尼日利亚中央银行和联邦税务局的数据库。解释变量包括公司所得税、增值税、高等教育税和海关及行使税。研究结果-研究表明,在公司税对外国直接投资的影响方面,军事政权时期的税收变量的解释力为79%,而文职政府时期的解释力为66%。公司所得税对外国直接投资的影响在军事政权时期比在文官政权时期更为明显。与文官统治时期相比,军事政权时期外国直接投资的趋同程度更高,这对政策评估和比较至关重要。新颖性——我们揭示了税收政策对FDI影响的新证据。论文类型:经验性关键词:公司税;税收政策;外国直接投资;误差修正模型;军事政权;平民政权。本文可参考的地方如下:江户市;可以用一个;伊曼纽尔,A.(2020)。税收政策与外国直接投资:制度变迁分析。j·芬·班克。综述,5 (3):84 - 98 https://doi.org/10.35609/jfbr.2020.5.3(3)JEL分类:E22, F21, H2, P33。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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