Abstract
This
objective ofthis study Is to examine the effect oftax revenue on the economic
development of Nigerian, and to ascertain whether there is any difference in
using HDI, NIEF and GDP in establishing the relationship. The approach adopted
in this study was that ofusing annual time series data for the period 2005 to
2016 to estimate a model of tax revenue and human development index, gross
domestic product and Nigerian index of economic freedom using ordinary least
square (OLS) regression technique. Results showed that a positively and
significantly relationship between tax revenue (independent variable) and two
dependent variables (HDI and GDP). The third dependent variable (Nigerian index
ofeconomic freedom) does not have a strong relationship with tax revenue.
Result also reveals that measuring the effect oftax revenue on economic
development using HDI gives a slightly higher relationship than measuring the
relationship with GDP thussuggesting that using Human Development Index (HDI)
gives a paintedpicture ofthe relationship between tax revenue and economic
development in Nigeria. The researcher introducedNigerian index
ofeconomicfreedom (NIEF) which is also an indicator and important measure of a
nation's Economic Development. We, therefore, conclude that tax revenue can be
an instrument of economic development in Nigeria. We also conclude that
development ofany tax policy on tax revenue for economic development should
better be based on' human development index (HDI), Gross Domestic Product (GDP)
and Nigerian index ofEconomic Freedom. This study provides a Useful insightfor
the government, stakeholders andpolicy makers into the importance oftax
revenuefor economic development as a result; income derived from tax should be
judiciously used so as to motivate citizens to continue to pay tax.
UCHE, U (2024). Effect Of Taxation On The Economic Development Of Nigeria (2005-2016):- Uche Nelson U. Mouau.afribary.org: Retrieved Oct 31, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-taxation-on-the-economic-development-of-nigeria-2005-2016-uche-nelson-u-7-2
UCHE, UCHE. "Effect Of Taxation On The Economic Development Of Nigeria (2005-2016):- Uche Nelson U" Mouau.afribary.org. Mouau.afribary.org, 06 Mar. 2024, https://repository.mouau.edu.ng/work/view/effect-of-taxation-on-the-economic-development-of-nigeria-2005-2016-uche-nelson-u-7-2. Accessed 31 Oct. 2024.
UCHE, UCHE. "Effect Of Taxation On The Economic Development Of Nigeria (2005-2016):- Uche Nelson U". Mouau.afribary.org, Mouau.afribary.org, 06 Mar. 2024. Web. 31 Oct. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-taxation-on-the-economic-development-of-nigeria-2005-2016-uche-nelson-u-7-2 >.
UCHE, UCHE. "Effect Of Taxation On The Economic Development Of Nigeria (2005-2016):- Uche Nelson U" Mouau.afribary.org (2024). Accessed 31 Oct. 2024. https://repository.mouau.edu.ng/work/view/effect-of-taxation-on-the-economic-development-of-nigeria-2005-2016-uche-nelson-u-7-2