Taxation, exchange rate and foreign direct investment in Nigeria

Omoyiola, Ayomide; Uwuigbe, Uwalomwa; Nassar, Lanre.; Ajetunmobi, Opeyemi

doi:10.21511/bbs.14(3).2019.07

Cited by 4 publications

(2 citation statements)

References 9 publications

(2 reference statements)

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“…The estimated results also show that the coefficients of GDPGR and INTR, shows a positive sign and insignificant statistically (Abu & Abdullah, 2010). The positive coefficient of the growth rate of the GDP and CPI conforms to the findings of Uwuigbe et al (2019) on the relationship between corporate taxation and FDI in Nigeria that GDP was positively insignificantly relationship with FDI while inflation had positive significant relationship with FDI.…”

Section: Thesupporting

confidence: 84%

Effect of Corporate Tax on Government Expenditure in Nigeria

Ologbenla¹

2021

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The study investigated the impact of corporate income tax on the government expenditure in Nigeria. Data on corporate income tax, value added tax, interest rate, gross domestic product, petroleum profit tax and consumer price index were collected and used as independent variable in the study while data on public expenditure were collected and used as independent variable in the estimated model. The ARDL bound test was applied and the result showed that corporate income tax have long run relationship that is significant with government expenditure. Other forms of tax such as value added tax and petroleum profit tax also have significant impact on government expenditure. The study concluded that corporate income tax should be sustained in order to ensure that government continue to fulfill her obligation of provision of social amenities that will promote the economic growth of the country.

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Section: Thesupporting

confidence: 84%

Effect of Corporate Tax on Government Expenditure in Nigeria

Ologbenla¹

2021

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“…In a related study, Ojeka et al (2021) investigated the effect of the tax rate on the inflow of foreign direct investment to the Sub-Saharan African countries and failed to provide empirical evidence in support of a significant relationship between tax rate and inflow of foreign direct investment, though it showed a positive relationship. Uwuigbe et al (2019) studied the role of taxation and exchange rate on the inflow of foreign direct investment in Nigeria for the period of 1985 t0 2015. The study employed the Ordinary Least Square method of estimation and found that the corporate tax rate has a negative and significant effect on the inflow of foreign direct investment in Nigeria for the period under investigation.…”

Section: Literature Reviewmentioning

confidence: 99%

Choice of location for Foreign Direct Investment by multinational corporations: Do tax burden matter?

Bassey

Amobi²,

Okorie³

2022

IJFAM

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Purpose: This paper investigated the effect of the tax burden on the inflow of FDI into the continent. The study employed a panel data set of 48 SSA countries covering a period of 2009 to 2018. Research methodology: In other to account for the endogeneity problems associated with most financial data, we employed a dynamic panel two-step-system-GMM. Results: The result indicates that tax burden is a negative determinant of the inflow of FDI. In other words, multinational corporations attach a significant premium to countries with low tax burdens than those with a high tax burden. Similarly, an increase in the mobility of labour is a negative determinant of the inflow of FDI into the continent. All the economic and financial freedom indices included in the model have a positive and significant influence on the inflow of FDI into the continent. A sustainable tax policy that will lessen the tax burden on foreign investors should be formulated to enhance the inflow of FDI into the continent. Limitations: This study employed Dynamic System GMM which can produce variant results depending on the choice of instrument. Contribution: This study provides insight on the role of fiscal policy particularly taxation in explaining the inflow of FDI. Policymakers, multinational corporations, and other players in the global FDI market will appreciate the influence that tax exerts on FDI inflow. Keywords: 1. FDI 2. Financial freedom 3. Investment freedom 4. Labour freedom 5. Monetary freedom 6. Tax burden

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