Tax Revenue, Capital Market Performance and Foreign Direct Investment in an Emerging Economy

International Journal of Economics and Financial Issues Pub Date : 2024-07-03 DOI:10.32479/ijefi.16043

Osevwe-Okoroyibo Elizabeth Eloho, A. O. Emmanuel, A. Dabor, E. L. Dabor

{"title":"Tax Revenue, Capital Market Performance and Foreign Direct Investment in an Emerging Economy","authors":"Osevwe-Okoroyibo Elizabeth Eloho, A. O. Emmanuel, A. Dabor, E. L. Dabor","doi":"10.32479/ijefi.16043","DOIUrl":null,"url":null,"abstract":"The study examines tax revenue, capital market performance and foreign direct investment (FDI) in Nigeria. The broad objective of this study is to find out the relationship between tax revenue, capital market performance and FDI in Nigeria. The study adopted a longitudinal research design and covers a period of 1994-2021. Secondary data were obtained from annual report and bulletins of the Central Bank of Nigeria. This study employed the ADF and Philips-Perron (PP) unit root test, panel Johansen cointegration test, VAR model, dynamic ordinary least square regression, full modified ordinary least regression and pairwise granger. The findings amongst others revealed that; value added tax has a bidirectional relationship with foreign direct investment in Nigeria; company income tax has no significant relationship with foreign direct investment in Nigeria; custom and exercise duty has a unidirectional relationship with foreign direct investment in Nigeria; stock market capitalization has no significant relationship with foreign direct investment in Nigeria. Based on the findings, the study recommended amongst others that policy makers should concentrate effort on long run policies that will stimulate capital market development in Nigeria, Also, a healthier and more robust friendly foreign investment policies should be created and maintained and the government should partners with foreign investors to enhance capital market development in Nigeria. ","PeriodicalId":30329,"journal":{"name":"International Journal of Economics and Financial Issues","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2024-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Journal of Economics and Financial Issues","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.32479/ijefi.16043","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}

引用次数: 1

Abstract

The study examines tax revenue, capital market performance and foreign direct investment (FDI) in Nigeria. The broad objective of this study is to find out the relationship between tax revenue, capital market performance and FDI in Nigeria. The study adopted a longitudinal research design and covers a period of 1994-2021. Secondary data were obtained from annual report and bulletins of the Central Bank of Nigeria. This study employed the ADF and Philips-Perron (PP) unit root test, panel Johansen cointegration test, VAR model, dynamic ordinary least square regression, full modified ordinary least regression and pairwise granger. The findings amongst others revealed that; value added tax has a bidirectional relationship with foreign direct investment in Nigeria; company income tax has no significant relationship with foreign direct investment in Nigeria; custom and exercise duty has a unidirectional relationship with foreign direct investment in Nigeria; stock market capitalization has no significant relationship with foreign direct investment in Nigeria. Based on the findings, the study recommended amongst others that policy makers should concentrate effort on long run policies that will stimulate capital market development in Nigeria, Also, a healthier and more robust friendly foreign investment policies should be created and maintained and the government should partners with foreign investors to enhance capital market development in Nigeria.

查看原文本刊更多论文

新兴经济体的税收、资本市场表现和外商直接投资

本研究探讨了尼日利亚的税收、资本市场表现和外国直接投资（FDI）。本研究的总体目标是找出尼日利亚税收、资本市场表现和外国直接投资之间的关系。本研究采用纵向研究设计，时间跨度为 1994-2021 年。二级数据来自尼日利亚中央银行的年度报告和公报。本研究采用了 ADF 和 Philips-Perron (PP) 单位根检验、面板 Johansen 协整检验、VAR 模型、动态普通最小二乘回归、完全修正普通最小回归和成对格兰杰回归。研究结果表明：增值税与尼日利亚的外国直接投资存在双向关系；公司所得税与尼日利亚的外国直接投资没有显著关系；关税与尼日利亚的外国直接投资存在单向关系；股票市值与尼日利亚的外国直接投资没有显著关系。根据研究结果，该研究建议，政策制定者应集中精力制定刺激尼日利亚资本市场发展的长期政策，同时，应制定和维持更加健康和稳健的友好外国投资政策，政府应与外国投资者合作，促进尼日利亚资本市场的发展。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

International Journal of Economics and Financial Issues

自引率

0.00%

发文量

期刊介绍： International Journal of Economics and Financial Issues (IJEFI) is the international academic journal, and is a double-blind, peer-reviewed academic journal publishing high quality conceptual and measure development articles in the areas of economics, finance and related disciplines. The journal has a worldwide audience. The journal''s goal is to stimulate the development of economics, finance and related disciplines theory worldwide by publishing interesting articles in a highly readable format. The journal is published Bimonthly (6 issues per year) and covers a wide variety of topics including (but not limited to): Macroeconomcis International Economics Econometrics Business Economics Growth and Development Regional Economics Tourism Economics International Trade Finance International Finance Macroeconomic Aspects of Finance General Financial Markets Financial Institutions Behavioral Finance Public Finance Asset Pricing Financial Management Options and Futures Taxation, Subsidies and Revenue Corporate Finance and Governance Money and Banking Markets and Institutions of Emerging Markets Public Economics and Public Policy Financial Economics Applied Financial Econometrics Financial Risk Analysis Risk Management Portfolio Management Financial Econometrics.