Tax Structure And Economic Growth In Nigeria

Table of Contents

• Abstract
• Chapter 1: Introduction
• Chapter 2: Literature Review
• Chapter 3: Methodology
• Chapter 4: Data Analysis and Results
• Chapter 5: Discussion of Findings and Policy Recommendations

Objectives and Key Themes

This dissertation aims to investigate the relationship between tax structure and economic growth in Nigeria from 1970 to 2007. It seeks to analyze the impact of changes in tax structure, specifically the introduction of Value Added Tax (VAT), on economic growth and inform policy recommendations.

• Impact of tax structure on economic growth in Nigeria.
• Comparison of pre- and post-VAT tax structures and their effects.
• Econometric modeling and analysis of the relationship between tax variables and GDP growth.
• Granger causality testing to determine the direction of causality between variables.
• Policy recommendations based on empirical findings.

Chapter Summaries

Chapter 1: Introduction: This chapter sets the stage for the dissertation by introducing the research problem, which focuses on the impact of Nigeria's tax structure on economic growth. It highlights the significance of understanding this relationship for effective policymaking. The chapter establishes the research objectives, outlining the methodology that will be used to examine the pre- and post-VAT tax structures and their effects on GDP growth. It also provides a brief overview of the dissertation's structure and organization. The introductory chapter sets the theoretical framework for the subsequent data analysis and interpretation of results.

Chapter 2: Literature Review: This chapter provides a comprehensive review of existing literature on the relationship between tax structure and economic growth. It examines various theoretical perspectives and empirical studies conducted in different contexts. The review critically assesses the methodologies and findings of previous research, highlighting the gaps in knowledge that this dissertation aims to address. The chapter synthesizes the existing body of knowledge to establish the context and justification for this study's approach and expected contributions to the field. It critically assesses different models and approaches used to assess the impact of taxation on economic growth, laying the foundation for the model selection in the empirical analysis.

Chapter 3: Methodology: This chapter details the methodological approach employed in the study. It explains the choice of data (annual data from 1970 to 2007), the econometric models used (including growth equations with average tax rates and specific tax variables), and the statistical techniques applied (unit root tests, co-integration analysis, Vector Auto Regression (VAR), and Error Correction Modeling (ECM)). The chapter justifies the selection of these methods based on the characteristics of the data and the research questions. It clearly outlines the steps involved in the empirical analysis, ensuring transparency and reproducibility of the findings.

Chapter 4: Data Analysis and Results: This chapter presents the findings of the empirical analysis. It reports the results of the unit root and co-integration tests, indicating the stationarity properties of the variables and the existence of co-integrating relationships among them. The chapter then presents the estimated results of the various econometric models, focusing on the significance and magnitude of the tax variables' impact on GDP growth. It carefully interprets the results obtained from the different models, comparing and contrasting the findings. The presentation of the Granger causality test results is also included, assessing any causal relationships between the variables studied.

Chapter 5: Discussion of Findings and Policy Recommendations: This chapter analyzes and interprets the findings from Chapter 4. It discusses the implications of the results for understanding the relationship between tax structure and economic growth in Nigeria. It specifically assesses the impact of the introduction of VAT on economic growth and highlights the significance of the findings. Based on the empirical results and the broader literature, policy recommendations are made to improve tax policy and enhance its positive impact on economic growth in Nigeria. The discussion emphasizes the practical implications of the findings for policy-makers and suggests strategies for optimizing the effectiveness of tax policies.

Keywords

Tax Structure, Economic Growth, Nigeria, Value Added Tax (VAT), Econometrics, Co-integration, Error Correction Model (ECM), Granger Causality, GDP Growth, Tax Policy

Frequently Asked Questions: Dissertation on Tax Structure and Economic Growth in Nigeria

What is the overall focus of this dissertation?

This dissertation investigates the relationship between tax structure and economic growth in Nigeria from 1970 to 2007, specifically analyzing the impact of Value Added Tax (VAT) introduction on economic growth and providing policy recommendations.

What are the key objectives of this research?

The main objectives are to analyze the impact of tax structure on Nigerian economic growth, compare pre- and post-VAT tax structures and their effects, employ econometric modeling to assess the relationship between tax variables and GDP growth, use Granger causality testing to determine causality between variables, and provide policy recommendations based on the findings.

What is covered in each chapter of the dissertation?

Chapter 1 (Introduction): Introduces the research problem, objectives, methodology, and dissertation structure. Chapter 2 (Literature Review): Reviews existing literature on tax structure and economic growth, highlighting knowledge gaps. Chapter 3 (Methodology): Details the data, econometric models (including growth equations), and statistical techniques used (unit root tests, co-integration, VAR, ECM). Chapter 4 (Data Analysis and Results): Presents the empirical findings, including unit root and co-integration test results, econometric model estimations, and Granger causality test results. Chapter 5 (Discussion of Findings and Policy Recommendations): Analyzes the findings, discusses their implications for understanding the relationship between tax structure and economic growth in Nigeria, and provides policy recommendations for improving tax policy.

What data and methods are used in the empirical analysis?

The study uses annual data from 1970 to 2007. Econometric models, including growth equations with average tax rates and specific tax variables, are employed. Statistical techniques such as unit root tests, co-integration analysis, Vector Auto Regression (VAR), and Error Correction Modeling (ECM) are used to analyze the data.

What are the key findings and policy implications?

The dissertation presents the results of econometric models, focusing on the significance and magnitude of tax variables' impact on GDP growth. It includes Granger causality test results to determine causal relationships. Based on these findings, policy recommendations are made to enhance the positive impact of tax policies on economic growth in Nigeria.

What are the keywords associated with this dissertation?

Tax Structure, Economic Growth, Nigeria, Value Added Tax (VAT), Econometrics, Co-integration, Error Correction Model (ECM), Granger Causality, GDP Growth, Tax Policy.

What is the significance of this research?

Understanding the relationship between tax structure and economic growth is crucial for effective policymaking. This dissertation contributes to this understanding by providing empirical evidence specific to Nigeria and offering policy recommendations to improve tax policy and enhance its positive impact on economic growth.