Comparative Analysis Of The Effect Of Value Added Tax (Vax) On Economic Growth: Empirical Study Of Nigeria And Ghana 2003 – 2016
ABSTRACT
There has been an argument on whether to increase the VAT rate or VAT base in countries. To
ascertain this, this study compared the impact of value added tax on the economic growth of
Nigeria and Ghana. The ex-post facto research design was adopted for the study and data were
collected from Federal Inland Revenue Services (FIRS) and Central Bank of Nigeria (CBN)
Statistical Bulletin; and Statistical Bulletin of Ghana Central Bank for the period 2003-2016.
Economic growth was proxied by real GDP while VAT was measured by VAT revenues in the two
countries under review. For comparative purposes, the local currencies of the countries under
review were used. The study employed Ordinary Least Square (OLS) regression method. The
regression results revealed that value added tax (VAT) has a positive and significant effect on
economic growth in Nigeria and Ghana but its impact in Nigeria's economic growth was higher
when compared to Ghana's. It was recommended that Nigeria should increase her VAT rate
while Ghana should increase her VA[ base.
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UKAN, O (2021). Comparative Analysis Of The Effect Of Value Added Tax (Vax) On Economic Growth: Empirical Study Of Nigeria And Ghana 2003 – 2016 . Mouau.afribary.org: Retrieved Oct 31, 2024, from https://repository.mouau.edu.ng/work/view/comparative-analysis-of-the-effect-of-value-added-tax-vax-on-economic-growth-empirical-study-of-nigeria-and-ghana-2003-2016-7-2
OLUCHI, UKAN. "Comparative Analysis Of The Effect Of Value Added Tax (Vax) On Economic Growth: Empirical Study Of Nigeria And Ghana 2003 – 2016 " Mouau.afribary.org. Mouau.afribary.org, 09 Jun. 2021, https://repository.mouau.edu.ng/work/view/comparative-analysis-of-the-effect-of-value-added-tax-vax-on-economic-growth-empirical-study-of-nigeria-and-ghana-2003-2016-7-2. Accessed 31 Oct. 2024.
OLUCHI, UKAN. "Comparative Analysis Of The Effect Of Value Added Tax (Vax) On Economic Growth: Empirical Study Of Nigeria And Ghana 2003 – 2016 ". Mouau.afribary.org, Mouau.afribary.org, 09 Jun. 2021. Web. 31 Oct. 2024. < https://repository.mouau.edu.ng/work/view/comparative-analysis-of-the-effect-of-value-added-tax-vax-on-economic-growth-empirical-study-of-nigeria-and-ghana-2003-2016-7-2 >.
OLUCHI, UKAN. "Comparative Analysis Of The Effect Of Value Added Tax (Vax) On Economic Growth: Empirical Study Of Nigeria And Ghana 2003 – 2016 " Mouau.afribary.org (2021). Accessed 31 Oct. 2024. https://repository.mouau.edu.ng/work/view/comparative-analysis-of-the-effect-of-value-added-tax-vax-on-economic-growth-empirical-study-of-nigeria-and-ghana-2003-2016-7-2