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

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.

Zero Trust Architecture: Trend and Impact on Information Security

“…On a general note, the operational impact of the model outweighs the cost [31], [32] and has been categorized as effective over other security models in the business context, telecommunication organizations such as At&T have confirmed that its reduces organizational risk and closes lapses in cloud control mechanisms, more so, it reduces the risk of a data breach, thus saving organizations the cost of litigations and unauthorized use of customer data for espionage, and more importantly, it reduces the risk of security breach both on-premise and virtually. Definition of Zero trust Various definitions have been coined around the Zero Trust Model, a common phrase in the definition is trust and this extends to the users, devices, networks, and other variables that interface within and outside the perimeters of an organization"s network.…”